Regulation delays let state's big spenders off hook

BurningMoney.jpgTreasury regulations aimed at curbing wasteful expenditure by officials on car rentals, hotels and air tickets will not immediately affect some of the government’s biggest spenders.

According to a Treasury instruction note sent to all departments, constitutional bodies and public entities last month, cost-cutting measures relating to executive authorities will only be set out in the revised ministerial handbook. The exempted authorities included ministers, deputy ministers, premiers, MECs and mayors, reported BusinessDay earlier this month.

A revision of the ministerial handbook was initiated more than four years ago, with no indication yet when it will be finalised.

The spokesman for Public Service and Administration Minister Lindiwe Sisulu, Ndivhuwo Mabaya, said an interministerial Cabinet committee was considering the revised handbook. He could not say when it would finally be adopted.

However, it would incorporate the cost-containment measures that the Cabinet approved late last year and Finance Minister Pravin Gordhan announced in his mini-budget in October.

Meanwhile, the spending continues. North West Premier Thandi Modise has flouted the spirit of the Cabinet’s drive to curb wasteful spending by splurging R1.3-million on a new BMW 750i. However, this was within the guidelines of the existing ministerial handbook.

Democratic Alliance finance spokesman Tim Harris said that the delay "casts serious doubt over whether these measures will be sufficient, or when they will kick in. Ms Modise’s car purchase showed that not all government leaders had accepted the need to curb costs, and that Mr Gordhan "faces an uphill battle in ensuring belt-tightening".

The measures outlined in the Treasury instruction note took effect from January 1, though a notice in the government gazette in November banned the use of individual credit and debit cards by officials.


Parliament.jpgThe Treasury’s latest measures include:
  • * Restrictions on the use of consultants, whose fees must comply with guidelines and contracts for whom must include penalty clauses for poor performance.
  • * Economy air tickets will be mandatory for employees on domestic flights and business class will be available only to directors-general and CEOs of public entities. No first-class travel would be allowed "under any circumstances".
  • * Domestic hotel accommodation may not exceed R1 300 per night, per person, including dinner, breakfast and parking except in specified circumstances.
  • * Vehicles can be hired from a category no higher than Group B or an equivalent class.
  • The Treasury has also put limits on the number of people travelling from Pretoria to attend events in Parliament or to other parts of the country. This will be limited to three employees, unless otherwise authorised.
  • * Departments, constitutional institutions and public entities will not be able to incur catering expenses for internal meetings without authorisation and cannot spend more than R2 000 per qualifying person per fiscal year. No alcohol can be purchased for these events, unless they are state banquets or intended as a promotional exercise or to host foreign dignitaries.

Adapted from BusinessDay

Leave a comment

SmartProcurement Newsletter

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
* Country:
* Public / Private:



Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More