Admin
13 Aug, 2019
Eastern Cape Legislature: Mr Mncedisi Filtane, MPL’s contribution Vote 12: Treasury
1. Having tried to juxtapose the MEC‘s policy speech with his department’s operational plan driven by such a minute budget, I could only conclude that the Eastern Cape government is going nowhere. When you reduce, by as much as 25%, the budget of Treasury, what do you expect to achieve in the sickly fiscal environment? If the whole province projects a revenue of R6 billion but commits to just R1, 4 billion then psychologically, those tasked during operations with collecting the dream R6bn, will immediately drop their efforts by whopping 80%. Ndokhe ndibone xa kusenzeka umlingo. Poor fiscal management continues to kill our provinces political, social and economic dreams. One suspects that political instability within the ruling party plays a big role in the mismanagement of allocated funds, hence the recurrence of irregular wasteful and non- expenditure of budgets. 2. Treasury should incentivise and reward departments that show great strides in tight fiscal control. Not only had that but even challenge departments in the economic cluster to produce an X number of jobs for every X R3 spent. Treasury should actually have a special internal unit that focuses on two things: ? The constant link between departmental expenditure and jobs created and sustained. ? Fiscus spent which results in enterprise ownership by Eastern Cape citizens. The fiscus continues to be plundered by the people from outside the province. Our fiscus should be used to create equity for the citizens of this province. The development of the invoice-tracking mechanism is much appreciated. It cannot be that it is practically impossible to simply put a stop to civil servants who do business with the state. As things stand there are officials who make sure that their invoices are fast tracked for payment? Surely this can be stopped. We implore Treasury to ensure that there is consequence management for those who plunder state resources. The additional powers conferred on the Auditor General should be utilised not only to deter potential thieves but severely punish the devilish beneficiaries. 3. Despite the policy position declared by the National Minister of Finance that tax collection has to be increased, yet in the Eastern Cape the source and base of an increased tax revenue seems to have be given very shy attention. There are no bold steps within the Economic Cluster to increase the tax base. This assertion is based on the type of projected jobs. Labourers earn low wages; it is the middle and upper class as well as businesses that form a solid tax revenue base. The MEC for Finance in his budget speech puts that emphasis on infrastructure development and agricultural economy. We know the bulk of the infrastructure budget goes to contractors and the goods they procure. Less than 25% goes to professionals. So, we would need to make sure that both the supplies and contractors are locally based in order to drive that budget to local suppliers. Agriculture we all know that this sector contributes just around 2% to the GDP consequently its contribution to our tax base is understandably low. In order for it to improve its contribution to our tax base, the export market would need to be tapped into in, a big way at that. There you talking billions. Another potential revenue base is by creating, at municipal level, to an environment in which professionals like doctors’ consultants, teachers etc. would feel comfortable to live and work. But alas the conditions are just too atrocious in most of these municipalities. Hence the brain and fiscal emigration to other provinces, where there are better living conditions. 4. Did it occur to the executive of the Eastern Cape that you are sending a very negative message to investors, when you reduce the budget of such a strategic department by whole 25%? The UDM takes this opportunity to implore the powers that be to review this situation. Add to that the small change allocated to the department of economic development, then potential investors get a clear message of just, how not serious you are on the economy.
Admin
14 Oct, 2016
UDM shocked by the Gauteng Department of Human Settlements
The United Democratic Movement (UDM) is shocked and disappointed by the state of affairs within the Gauteng Human Settlements Department, where more than R900 million is being withdrawn by Treasury, after the Department had apparently, amongst other things, failed to and/or unlawfully spent the budget. The withdrawal of the funds, meant for the creation of sustainable and integrated human settlement, clearly shows that the Department is incapable of delivery to our suffering people. Housing is one of the key factors that impact on the dignity of our people and their quality of life, but we have servants in the government sector who don’t take their mandate seriously and spend money unlawfully. As a result of these kinds of failures the public has, out of desperation, taken to the streets in protest to demand houses. UDM calls for the Department to be placed under administration and that Treasury should conduct an investigation into the matter. Those who are found to be on the wrong side of the law must be brought to book. Statement issued by: Ms Thandi Nontenja UDM National Treasurer
Admin
24 Jul, 2014
Eastern Cape: Budget vote Provincial Treasury
Speech by Mr Mhlati, leader of the UDM in the Eastern Cape Legislature Honourable Speaker, Honourable Premier and Executive, Honourable Members and government officials I would like to express a word of appreciation to the former MEC for Finance and Treasury for the wonderful work he did during his tenure to uplift the standard of performance by Treasury as stipulated in Section 18 of the Public Finance Management Act. Treasury has succeeded in assisting the various Departments to manage the financial resources of the Province in full compliance of the provisions of the PFMA and Treasury Regulations. If the Department was a plane I would say the pilot can just put it on auto flight because it can now cruise on its own without manual assistance. The only outstanding matter which I would like treasury to take up with the office of the premier up to Pretoria is the upgrading of the salary scales of the internal auditors so that they can be attracted to work for the government. The endeavours made by treasury to assist the municipalities in their financial management issues as required by the provisions of the Municipal Finance Management Act is being hampered by the failure of the Municipalities to appoint personnel with the requisite skills and qualifications for the positions as required in terms of the provisions of the Municipal Systems Act. It is high time that the Honourable MEC for Local Government and Traditional Affairs working together with the Premier of the province should address the political instability in Municipalities which have a negative effect on the performance of the Municipalities. Even if we can work together without changing the working environment in Municipalities we will never move South Africa forward. They are the centres for service delivery to our people. Treasury had canvassed us to encourage civil servants to take early pension before we do that he must show us the commitment that people who exit the civil service are paid their exit benefits within a month of leaving the service. Some people have died waiting for the payment of their benefits. In every budget funds for the payment of these benefits should be ring-fenced in each Department as most of the people who are going on retirement are well known within the Department. A word of appreciation also goes to the chairperson of this committee for inviting all chairpersons to be present at the meeting of the Committee when dealing with transversal matters. I think that the exposure has opened the minds of the Honourable Members on how the funds of the Province are handled. However, there appears to be a need for a workshop to be conducted among the members on how the budget of the Province is being crafted up to the last stage to avoid unplanned requests for increases towards the end of the process. The UDM fully supports the report of the Committee and its recommendations. I thank you
