Wasteful Expenditure Monitor: World Cup ticket splurge brings total to R 1,18 billion

The DA will today update it wasteful expenditure monitor, a running total of the wasteful expenditure of the ANC government, to R1, 18 billion, mostly due to the excessive amount spent on World Cup tickets. In defiance of Finance Minister Pravin Gordhan's recent statements warning state entities of the legal ramifications of wasteful, and potentially irregular, expenditure of state funds on World Cup tickets, national government departments, state-owned enterprises and ANC-run municipalities have splurged an additional R 17.3 million on unnecessary luxuries such as cars, artwork and VIP facilities. Together with the over R 110 million of public funds spent on World Cup tickets, this brings the total to R 127,3 million, enough to build 2357 Breaking New Ground (BNG) houses or employ an additional 987 new teachers for a year.

The amount spent on World Cup tickets and ticket packages thus far includes:

• R 16.7 million spent by the Department of Trade and Industry ( including the Industrial Development Corporation ) on approximately 3054 World Cup tickets.
• R 12 million spent by Eskom on 1110 World Cup tickets, including 700 top-drawer ‘hospitality tickets' valued at R 17 000 each.
• R 12.5 million spent by PetroSA on 1000 World Cup tickets.
• R 1.4 million spent by the Central Energy Fund on World Cup tickets.
• R 5.2 million spent by the Department of Communications on 2786 World Cup tickets.
• At least R 4.5 million spent by the ANC-run City of Johannesburg on World Cup tickets, T-shirts and other paraphernalia. DA councillors gave their tickets back in accordance with party policy.
• R 4 million spent by the ANC-run Gauteng provincial government on 4613 World Cup tickets.
• R 6,8 million spent by the ANC-run Free State province
• R 15 million spent by Mangaung Municipality in the Free State
• R 918 973 spent by the Department of Tourism on 180 World Cup tickets
• R 23 million spent by South African Airways (SAA )
• R 800 000 spent by the South African Post Office
• R 314 000 spent by the Council for Scientific and Industrial Research
• R1 million spent by Sentech
• R3, 3 million spent by the SABC
• R 730 520 spent by Mbombela Municipality
• R 1, 2 million spent by Mpumulanga's Department of Sport, Art, Recreation and Culture
• R 500 000 spent by Tshwane municipality
• R 278 160 spent by the Eastern Cape's Department of Sport, Recreation, Arts and Culture

This brings the total amount spent by government departments and state entities on World Cup tickets for Ministers, Deputy Ministers, department officials and ‘stakeholders' to over R 110 million. This wanton spending is a direct flouting of Minister Pravin Gordhan's directive that municipalities refrain from spending public money on World Cup tickets, and his recommendation that provincial and national government departments follow suit.

Cases of fruitless and wasteful government spending in the months leading up to, and including, the World Cup include:

• R 9.5 million spent by the Department of Defence on a dedicated DoD VIP lounge at OR Tambo International Airport for use by Defence Minister Lindiwe Sisulu, department officials and official guests.
• R 3 million spent on a statue of King Shaka Zulu for Durban's new King Shaka International Airport which was removed because KZN Premier Zweli Mkhize and King Goodwill Zwelithini did not like it.
• R 1.5 million spent by the ANC-run eThekwini municipality on a statue of an elephant that was removed because it resembled the emblem of the Inkatha Freedom Party (IFP). The statues were commissioned as the first part of a multi-million rand upgrade of Durban's new Warwick Avenue interchange.
• R 1.4 million spent by the Department of Public Service and Administration on two luxury cars for Minister Richard Baloyi, a BMW X5 3.0d (at R 712 400) and a Mercedes-Benz E350 CDI (at R 666 850).
• R 1.5 million spent by the Department of Transport on self-congratulatory advertorial inserts in several national newspapers, each featuring 27 full-colour photographs of Transport Minister S'bu Ndebele.
• R 319 000 spent by the Department of Public Works on new furniture for Hoogelegen, the official residence of Deputy Justice and Constitutional Development Minister JJ De Lange.
• R 31 000 spent by Gauteng Premier and ANC National Executive Committee Member Nomvula Mokonyane on a large, full-colour advertisement of herself.

This means that, in addition to the over R 110 000 million already spent by government departments and state entities on World Cup tickets, ANC-run departments and municipalities have spent an additional R 17.3 million on unnecessary luxuries in recent months, bringing the total to R 127.3 million. I will be writing to President Jacob Zuma and Public Service and Administration Minister, Richard Baloyi to ask when the Task Team appointed almost a year ago to "look at government expenditure in the context of the economic meltdown" intends releasing a final report. The failure by the Presidency and the Task Team to take any concrete steps with regard to wasteful expenditure represents a profound failure of political will and leadership; the President must explain to the people of South Africa if and how he intends to deal decisively with this matter.

The Western Cape has led the way with regards to cutbacks in ministerial spending. Under the current DA administration, provincial ministers agreed - unlike their national counterparts - not to buy any new official vehicles when coming into office. DA ministers have also cut travel costs to a minimum, scaled down or cancelled unnecessary events, advertising, marketing and other extras. Over the next three years, the DA government in the Western Cape has identified efficiency savings to the value of R 2.1 billion over all provincial departments. This will ensure that more money can be directed towards the areas where it is most needed, and not towards inflating the egos of government ministers who are woefully out of touch with the plight of ordinary citizens.

Statement issued by Lindiwe Mazibuko MP, Democratic Alliance national spokesperson, July 4 2010

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