Guiding consumers since 2009

SA cabinet costs taxpayers millions

By Staff Writer
Nicolette Dirk, finance writer, Justmoney.co.za
 
The Democratic Alliance (DA) will submit a series of questions to determine the exact amount President Zuma’s new Cabinet will cost South Africans.
 
This comes after estimates suggest that the new Cabinet will cost the state R143 million in salaries per annum. It has been reported that the President’s cabinet is one of the biggest in the world with more cabinet ministers than the US, Germany and Japan, all of which have much bigger economies and broader tax bases.
 
Economist Mike Schussler told Timeslive that he wasn’t sure if a bigger cabinet would make a difference or just add to the cost of government.
 
What is our money being spent on?
 
According to Alf Lees, DA spokesperson on Standing Committee on Public Accounts, the DA will submit questions to President Zuma’s new cabinet to determine the costs and justifications for among others; budget vote cocktails, car purchases, car rentals, catering and entertainment, credit cards, flights and accommodation.
 
“The past two years saw a total of R231 million of state funds being spent by the national departments on a number of questionable items. In 2009, former Minister of Finance, Pravin Gordhan (pictured), warned that the state had to be more disciplined in the way it manages its money. This was followed by little to no action, only empty assurances that a new Ministerial Handbook would be introduced,” said Lees.
 
Salary increases
 
Reports state that the budget for The Presidency has gone up from R257 million in 2007 to R329 million in 2009. The cost of the cabinet rose to R727-million in 2010, R959-million in 2011 and R1.1billion in 2012. There are now estimates that the allocation for The Presidency will rise to R1.3 billion in the next three years.
 
Lees said that despite numerous promises from different Ministers of Public Service and Administration, and most recently, Minister Lindiwe Sisulu, the DA is still waiting to view the new Ministerial Handbook. 
 
“This means that there remains no way to ensure that action can be taken against Ministers for wasting state money.

Instead of wasting public money on perks and privileges, President Zuma’s government must take full responsibility for their irresponsible spending and begin the much needed belt-tightening process,” said Lees.

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions