Increase in government’s wage bill is excessive

24 May 2017

In 1994, the government’s wage bill was only 5% of its total expenditure. It has now increased to more than 40% and dr. Corné Mulder, chief whip of the FF Plus, says that is excessive.

Today, during the department of public service and administration’s budget vote debate, dr. Mulder said that it is indeed the government’s duty to create jobs, but to use the public service to do so is the wrong approach.

“The FF Plus is of the opinion that the private sector needs to be helped to create jobs so that the economy can grow. This, however, is not happening. Job opportunities cannot be created by continually enlarging the public service. It is an exceptionally detrimental situation.

“Equally worrisome is the fact that the national treasury’s division of procurement found that there are 12 000 dead people on the register of companies that are doing business with the government. This is because corrupt officials create false companies using the deceased’s details so as to obtain contracts.

“What is even more worrisome is that the same office found that there are 14 000 public servants that serve as directors of companies that have contracts with the government.

“Public servants doing business with the government simply cannot be allowed. A public servant should earn a reasonable salary and serve the public and the country. They cannot abuse their positions to obtain contracts with the government. 

“The very same office also found that fraud and artificial price adjustments cost the government 40% or R600 billion for goods and services in 2016. A good example is Nkandla where more than R262 million was spent, but on inspection one will find no more than R50 million in value.

“Someone, however, got paid for it. That is where the money is going. That is the root of corruption in South Africa,” said dr. Mulder.

Issued by Corne Mulder, FF Plus chief whip, 24 May 2017