NEWS & ANALYSIS

Cost containment regulations should be extended – Geordin Hill-Lewis

DA MP also says there should be real consequences for failure to abide by Mboweni's new rules

Cost containment regulations should be extended to all levels of government

12 June 2019

The Democratic Alliance (DA) welcomes the new regulations gazetted by Minister of Finance, Tito Mboweni, in an attempt to contain costs at municipalities.

The Minister should not limit these measures to local government only. Stricter cost containment measures should be extended to all spheres of government and state-owned entities, and there should be real consequences for failure to abide by them.

With many new Ministers and Deputy Ministers, there will be a slew of expensive new car orders, office revamps and home renovations. These should be stopped now.

Ten years ago, the DA implemented cost cutting measures in our governments, by writing a new and more austere Cabinet Handbook, by limiting the cost of vehicles and extending their use.

Reversing the pattern of inefficient consumption spending by national and provincial government will not be easy. That is why an extensive expenditure review needs to be conducted. This will improve expenditure efficiency and will help ensure that tax money is spent on improving the lives of South Africans through service delivery, social and capital investment.

The DA will write to the Minister of Finance to request that cost containment measures are extended to all spheres of Government, and that an extensive expenditure review is conducted.

The DA will also write to the Presidency to request a progress report on the updated ministerial handbook. The ministerial handbook is a guide for ministerial expenditure. Unfortunately, the current ministerial handbook allows for public money to be abused.

Issued by Geordin Hill-Lewis, DA Shadow Minister of Finance, 12 June 2019