DA welcomes ANC undertaking to close down NYDA

15 October 2014

The Democratic Alliance welcomes the undertaking by the Chairperson of the Portfolio Committee on Public Service, Bertha Mabe, that Parliament will recommend the closure of the National Youth Development Agency (NYDA) should it not turn its affairs around by the end of 2014/15 financial year.

During a meeting of the portfolio committee today, the Chairperson put it on record that this year was the "last chance" for the NYDA. 

She said that should the implementation of the NYDA's turnaround strategy fail "we will recommend that you close shop".

This commitment from Chairperson Mabe came as the NYDA was presenting its Annual Report for 2013/14 to the Portfolio Committee. The Agency also took the opportunity to ask the committee to increase its annual grant from R408 million to R600 million, despite its track record of excessively high salaries and wasteful and irregular expenditure.

The NYDA Annual Report revealed that in 2013/14, the NYDA:

Blew R168.5 million of its R393 million state grant (or 43%) on salaries for 386 employees, which equates to an average personnel cost per employee of over R436 000;

Paid an average salary of R1.6 million to its top management team;and

Coughed up almost R21 million on salaries for its bloated complement of 19 senior managers, at an average personnel cost per employee of nearly R1.1 million.

The Agency claims to have embarked on a turnaround strategy that will result in a reduction of the wage bill. But so far there has been no evidence of it. 

In fact, the NYDA's 2013/14 Annual Report provides further confirmation that the Agency should be scrapped.

The DA welcomes the ANC's ultimatum to the NYDA. 

However, we will continue to lobby for the NYDA's entire grant to be channeled towards the youth wage subsidy and effective skills development programmes.

Doing so will provide better bang for the taxpayers' buck and is likely to make a greater dent in our spiraling youth unemployment rate.

Statement issued by Dr Michael Cardo MP, DA Shadow Deputy Minister in the Presidency, October 15 2014

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