We need to identify and deal with big spending ministers undermining National Treasury

22 November 2015 

The Minister of Finance, Nhlanhla Nene, is desperately trying to cut spending on “non-core goods and services” including consultants, travel and catering, which cost a staggering R25 billion in 2013/14.

The cost containment measures were originally introduced by former Minister of Finance, Pravin Gordhan, and were outlined in National Treasury Instruction 01 of 2013/2014.

However, a reply to a parliamentary question reveals that belt-tightening measures, imposed by the National Treasury, are being resisted. 

National Treasury has been faced with numerous requests for deviations from cost containment measures, including requests from the Presidency, the Department of Defence and the Department of State Security.

However, the Mpumalanga Gambling Board takes the cake, requesting deviations: 

- on domestic hotel accommodation because “hotels around Mpumalanga at or below the rate of R1300 including dinner are generally not conducive for board members because of safety issues, and other practical factors”; and

- on vehicle hire because “Group B cars are considered not adequately safe for trips to certain areas, and for long distance travel, the resultant health and safety risks created by use of substandard vehicles are unacceptable to the board”.

National Treasury, to its credit, refused to approve most of the requests for deviations from cost containment measures.

However, in the end National Treasury seems to be losing the “war on waste”. 

National Treasury barely made a dent in cutting spending on “non-core goods and services”, saving only R2 billion, or 8% of the total amount spent on consultants, travel and catering, in 2014/15 compared to 2013/14.

What is worse is that savings, as a result of cutting spending consultants, travel and catering, are often rolled into other categories of wasteful expenditure, such as new ministerial vehicles.

The adjusted budget reveals, for example, that R1.25 million, saved inter alia on travel and subsistence, in the Department of Health, was rolled over to purchase new ministerial vehicles for Dr Aaron Motsoaledi.

I have requested the Chairperson of the Standing Committee on Finance, Yunus Carrim, to schedule a meeting on the cost containment measures being implemented by the National Treasury.

In the end, we have to identify and deal with the big spending ministers who are resisting cost containment measures being implemented by the National Treasury.

Statement issued by David Maynier MP, DA Shadow Minister of Finance, 22 November 2015