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SA is fast running out of money

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Eastern Cape budget must speak to current financial crisis we are facing

Dear MyPE

The country is officially in recession and is fast running out money. The province is facing massive financial squeeze and we cannot waste a single cent on non-core business.

Last year we heard a lot of promises about putting austerity measures in place, instead the government has found it impossible to save money or to reign in the spending of departments.

Tomorrow’s budget speech by Finance MEC, Mlungisi Mvoko, must set out a plan that will speak to how the Eastern Cape will adapt in order to survive the fiscal crisis.

He must:

  • Present a credible plan to initiate savings in respect of the excessive and unaffordable civil servant wage bill
  • Provide direction on cost containment measures and addressing wasteful expenditure
  • Give clear direction relating to the restructuring of provincial state-owned entities
  • Give details of a turnaround strategy to deal with the accruals within the Departments of Health and Education
  • Ensure that budget is redirected from non-core expenditure to infrastructure investment in the province to stimulate growth and development

MEC Mvoko could also place a moratorium on:

  • The filling of all vacancies that are administrative in nature and that do not impact service delivery;
  • The filling of vacancies at provincial entities;
  • All overtime for administrative personnel, except for positions that have a direct impact service delivery such as EMS staff and traffic officers;
  • The purchase of all vehicles for politicians;
  • All further issuing of Agriculture loans by ECRDA
  • All non-specialised contracts awarded to contractors from other provinces.

Additional funding is also required for the following departments:

  • Provincial Treasury for support with financial turnaround plans and secondments to ailing local governments in the Eastern Cape
  • CoGTA for drought mitigation and drought relief in water scarce municipalities
  • DRDAR for drought aid for farmers
  • Public Works for infrastructure development that will unlock investment opportunities
  • Accruals in Health and Education

In the 2019/2020 Budget non-core expenditure included R148,2 million on catering and R925,7 million on travel and subsistence.
Cellphone related expenditure has grown substantially, from R60,8 million in the 2016/2017 financial year to R373,5 million in 2018/2019.

The proposed wage bill in the adjustments appropriation bill last, stood at R54.1 billion which is 65% of the total budget. This is simply unsustainable. If this can be brought to 60%, it would free up R4-billion that could be spent on education or health.

A capable state unlocks the potential of provincial assets and make them sweat for the people of the Eastern Cape.

Our leaders must never forget they are elected by the people and must be close and accountable to them. South Africans deserve a government they can trust and that will responsibly spend every cent, to create opportunities for all. Only a capable state can ensure we get value for money.

Regards

Retief Odendaal

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Port Elizabethan

This author is a 'catch-all' for occasional articles and letters written to MyPE. The Author of each article can be found in the signature at the bottom of each individual article.