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Nene's mission is to create a culture of austerity in govt

Johannesburg - Government is starting to see the results of its austerity measures, but it needs to create a culture of cost containment, Finance Minister Nhlanhla Nene said on Friday.

Addressing a business briefing in Fourways, Johannesburg, Nene said: "It is a culture that needs to change. Do not do with public funds what you would not do with your own money".

He said some of the progress made through improving supply chain processes. For instance, government was now able to procure learner support material that previously cost R300 per package for between R95 and R115 including delivery.

He said, it was through discussions with suppliers that such savings could be achieved.

Meanwhile, South African Revenue Service (SARS) Commissioner Tom Moyane said the organisation was getting better at dealing with tax fraud, especially VAT swindling.

Speaking at the same briefing, he said SARS was closing the gaps and leakages that have made it possible for taxpayers to defraud the system.

Moyane said "tax morality" was key.

He said SARS was also dealing with illicit cash outflows, which he said was stunting the growth of  African countries.

Moyane, however, would not comment on the tax implications of the deal between Anheuser-Busch and SABMiller. He said there was a team at SARS that would look at the deal.

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