Gordhan cans state credit cards, puts lid on bling cars
Fin24

Gordhan cans state credit cards, puts lid on bling cars

2013-10-23 15:02

Cape Town - Finance Minister Pravin Gordhan drew a line in the sand on state spending on Wednesday, announcing cuts to official perks and giving half of government departments not a cent more in his mid-term budget review.

In a last-minute agreement with cabinet, the state is to impose tighter guidelines on cars, accommodation and travel for all government leaders, from ministers to mayors.

Gordhan said these would apply from December 1 and would spell an end to official credit cards, million rand vehicles, luxury hotel stays and expensive home upgrades for cabinet members.

He told reporters it would also apply to the presidency. Asked about plans to purchase a new presidential jet, Gordhan said if this was necessary, it would be done.

The finance minister said he expected the downgrading of official perks with regard to cabinet ministers would save only about R15m, but if applied across all tiers of government it could bring savings of R2bn.

The announcement dominated a medium-term budget Gordhan said stuck to his counter-cyclical approach of "supporting growth and job creation and fiscal moderation".

He gave assurances that the budget deficit would decrease in coming years, and added: "We think we have what we need to manage any turbulence that might arise."

Where the minister did open the public purse for adjusted appropriations, most of the additional funding went towards the state's rising wage bill, at an added cost of more than R2bn.

At a national level, Treasury is handing out R1bn to cover salary increases, inflation related and otherwise.

Another R1.25bn is going to the provinces to pay for a R690m upgrade in clerical posts and R563m higher-than-expected salary increases.

The police ministry received a sizeable budget adjustment, of which R202m will pay for improving detective services and R20m will go towards the embattled crime intelligence division.

A further R444m will be spent on increasing visible policing.

Gordhan reiterated Treasury's firm commitment to the National Development Plan - which remains contested in the ruling alliance - and also called on the labour movement to come to the party in stabilising the investment climate in South Africa.

Without making any firm pronouncement on privatisation of state-owned enterprises, he repeated that the state had to rationalise its assets, including selling off those that served no useful purpose.

Wednesday's mid-term budget review also saw an increase for the department of public enterprises, but the only parastatal to benefit was arms manufacturer Denel.

This includes R57m to cover penalties on its onerous production contract to make parts for Airbus. However, this is a considerable decrease compared to payments of around R200m in recent years from the state's R1.6bn indemnity cover to Denel linked to the contract.

Gordhan said there was no indication of a new state guarantee for South African Airways because the implications of the recently-announced turnaround strategy for the national carrier were still being considered.

The defence ministry received an additional R150m for sending troops to the Democratic Republic of Congo as part of the UN intervention force in the conflict-ridden central African nation.

Comments
  • Richard Scully - 2013-10-23 15:07

    I think Audi 6 and BMW 5 are still bling.

      JimGordon - 2013-10-23 15:12

      Damn! I'm going to sell my shares in Nandos and Kentucky!

      Fanie Viljoen - 2013-10-23 15:21

      At least they will eat less Nandos on our money!!

      FJ Cele - 2013-10-23 15:22

      Gordon - we are not interested as these will have a minute affect. Please tell us how you will stop corruption and stealing from the poor. Will the guilty be forced to pay the money back? Will they be suspended immediately without pay and then paid if proven innocent. Please give us real solutions.

      NickvanGraan - 2013-10-23 15:39

      Is this enforceable I wonder?

      Pierre Pretorius - 2013-10-23 15:39

      Hot air if you ask me. Election season...that's all.

      Theo Schoeman - 2013-10-23 15:40

      In the past no one ever worried about totally overspending their budgets and nothing ever came of it.... what makes Gordon think any of that will now change. Electioneering nothing else. Too little too late

      Eterni80 - 2013-10-23 15:54

      wow - it's taken the ANC 20 years to realise the obvious....

      Ayanda Koza - 2013-10-23 15:54

      YES! We have a Government that WORKS for the people!! Thank you Mr Gordhan. Viva Government Viva! Viva 2014 VIVA!

      Themba Maseko - 2013-10-23 16:00

      We should remember that this does not only apply to 66% ANC appointed government officials but also to 34% other opposition appointed government officials!!!

      Colin Malan - 2013-10-23 16:01

      Richard ,, How easy is it to spend money, it becomes even easier when it is not your own money but someone else,s ( read taxpayers ) money. How many more warnings of this nature can the ANC listen and then arrogantly treat with contempt. On a positive note ,hope they will take heed this time,if they do not then let there be severe repercussions for all the offending parties. Like someone said : NO MORE NANDOS.

      colin.dovey - 2013-10-23 16:01

      Can see you blushing there Ayanda....or is that just blood from spouting rubbish?

      Dhavandran Palavar - 2013-10-23 16:08

      fairy tale to get back the losing support for cANCer in the next elections. sorry greedy gordhan nice try but the people have been made wiser by the f@#k ups of cANCer. you are still the puppet of cANCer.

      FJ Cele - 2013-10-23 16:25

      Ayanda = Pinky

      Revelgen - 2013-10-23 16:31

      As I remember, govt credit cards were limited to between R50 000 and R100 000 PER MONTH, this ON TOP of fat salaries for people many of whom do not even show up for work. Now add in the fact that pay in the SA Public Sector is about 40% higher than equivalent jobs in the private sector. Apparently, a cleaner in govt employ gets paid more than a teacher in India or Brazil. Anyone care to contradict the above? Time to fire at least a third of people in govt employ, then we WILL see some real savings. And creating a bloated Public Service does NOT create 'employment - it only eats up more of our taxes unproductively.

      Barrie Murphy - 2013-10-23 16:40

      Funny how just before the mini budget was announced, he had a meeting about curbing officials expenses, and they agreed. Then Gordhan set's aside a billion rand for salary increases?

      Armstrong Dreadnaught - 2013-10-23 17:48

      About time! Took 20 years of good eating to do. Will they say "sorry"? Boycott the anc.

      Emm Emm - 2013-10-24 11:43

      They will just steel the money somewhere else to still live it up at the expense of tax payers

      Ephraim Mashaba - 2013-10-24 13:37

      Logic my prevail, we just can't get excited by Pravin speech e.g. on bling car limit at BMW 5 series level, it is still high considering that an M5 is still a 5 series going at +R1.1m, He need to be specific in terms of Rand value, he left a lot of loop holes to be exploited by his comrades

      Elgh Elgh - 2013-10-24 13:54

      It's just an eye blind, elections coming up next year.

  • Colin Chester - 2013-10-23 15:07

    Just before election time..How convenient.

      Vaughan - 2013-10-23 15:19

      Exactly, its all electioneering... Billions will continue to be lost to corruption whether by credit card or ETF.

      Themba Maseko - 2013-10-23 16:02

      Colin do not worry DA can change that if it can get to power in 2014!

      Dhavandran Palavar - 2013-10-23 16:14

      50 shades of cANCergraphy proudly published by cANCer.

      Caine Abel - 2013-10-23 21:18

      Well this bs has been spun for for another term in office

  • Werner Friesenbichler - 2013-10-23 15:08

    18 years to late !!!!

      Obed Majoko - 2013-10-23 15:11

      Did you stop your company credit card and car allowance 18 years ago?

      John Fourie - 2013-10-23 15:17

      @Obed: Not relevant. It is HIS company credit card and HIS allowance. Not those of tax payers.

      Gustav Harmse - 2013-10-23 15:19

      Hi Obed, My company don't use your TAX money to pay for my credit card, what is your main malfunction????

      Fanie Viljoen - 2013-10-23 15:22

      Its never too late! At least something is being done, just hope it will be implemented though!

      Erich Goosen - 2013-10-23 15:43

      I agree - after 18 years nothing positive has been done to curb excessive spending. How many Ministers, MECs, mayors or other gravy train passengers have thus far been compelled to re-imburse and pay back the money they have misspent? Taking away official credit cards is a step in the right direction but the only way these ignorant and greedy officials will listen is when such irregularities come to light is to freeze the salary and allowances for the period when the investigation is going on.

  • Mel McBride - 2013-10-23 15:11

    too little too late

      Marius Jacobs - 2013-10-23 15:21

      Well, better late than never. It is a good turnaround...lets hope it works, is enforced, and sticks past the elections!!!

      MastersVoice - 2013-10-23 19:04

      I actually don't think anything has changed! Nkandla is still costing us R250mil! Money is already down the drain! They have not changed or fixed anything; the government thieves will continue syphoning off as much as they can. This is a token - a drop in an ocean.

  • Patrick Saunders - 2013-10-23 15:11

    a little late for that now, don't you think. besides, after 2014, Gordhan will be history and some other numpty cadre will just reinstate it all.

  • Konstabel Koekemoer - 2013-10-23 15:12

    "the state had to rationalise its assets, including selling off those that served no useful purpose." ... does that mean they will get rid of Zuma?

      Konstabel Koekemoer - 2013-10-23 15:13

      although he is more of a liability then an asset

      Lionel De Frontignac - 2013-10-23 15:50

      That's the thing; who else would want him? He, and all the other cabinet ministers are unemployable on the open market. On the other hand, maybe he could star in Mbongeni Ngema's next musical....

  • Heinrich Spreeth - 2013-10-23 15:12

    "R563m higher-than-expected salary increases." How does one increase a salary "higher than expected"? Is the budget such a joke to everyone?

      Siyabonga Biyela - 2013-10-23 15:32

      I suppose the public servants' unions manage to settle for wage rates higher than anticipated/budgeted for by the different government departments

      Geoff Tregaskis - 2013-10-24 11:08

      Instead of increasing their already exorbitant salaries, they should fire at least 30% of these fat useless pigs.

  • jonas.mbedzi - 2013-10-23 15:13

    it was a well prepared speech & those can cuts must put into practice,stop waiting our money on luxury cars..expensive hotel stays..abuse of our hard earned deducted cash..including nkandlaville

  • RoadSideBomer - 2013-10-23 15:25

    They say when Pres Mbeki gave a speech you needed a dictionary to understand him, when Zuma gives a speech, you need Mac Maharaj to understand him..

      Petro Borchard - 2013-10-23 15:39

      LMAO!!!

  • Lee-Anne Benjamin - 2013-10-23 15:26

    A little too late.. we still not voting for you come 2014

  • Piet Viljoen - 2013-10-23 15:27

    Do you really think our communist, terrorist “buddies” running this country will give a damn? If they can’t get money to spend on food, booze and luxuries for themselves, they’ll just steal it. That is TAX MONEY generated by the MINORITY in this country!

      Sina Block - 2013-10-24 13:35

      They are used to steal all along Piet now they will steal more then ever

  • dannymothilall.danny - 2013-10-23 15:29

    Sorry Mr.Finance Minister but you Just Missed out THE VIP ENTOURAGE WITH 32 BODYGUARDS AND BLUE LIGHTS, DID you ever THINK about THAT?

      Sina Block - 2013-10-24 13:38

      I guess the luxury life of the ministers is so much that Pravin forgot about to include all of it

  • Titus Chauke - 2013-10-23 15:29

    i think it is a good thing to cut on as these politicians dont care how much they spend , they live a life a being given a blank cheque. let us check in the next financial year if they can mamtain the disciline.

      Lionel De Frontignac - 2013-10-23 15:52

      They'll make it up through inflated tenders via some family member.

  • Jeremy Thewasp - 2013-10-23 15:30

    Anc MP'S will have to downgrade to Chicken Licken I was hoping he would say the best way for us to fix the economy is for all of us at the Anc to step down and hand over power to a Party that actually cares about the people of SA and not just ourselves and lining our pockets....oh well :(

      colin.dovey - 2013-10-23 16:04

      Chicken Livers are more suitable

  • Gerhard Veldman - 2013-10-23 15:30

    Ek laaik!!!!!

  • proudlysa - 2013-10-23 15:31

    Put Nkandla on OLX or Gumtree and SELL it! We as taxpayers want our money back

  • Wendy Nezar Schmidt - 2013-10-23 15:31

    Does this now come into effect as there is no money left .. how big hearted.

  • Kamal Sukha - 2013-10-23 15:35

    At least one department that seems to be in order and making progression (even though slight) towards putting tax payers money to better use.. Nice one Minister Gordhan

  • Harshad Daya Vallabh - 2013-10-23 15:38

    Just another election campaign A-hole

  • Andre van Vuuren - 2013-10-23 15:38

    Hey Pravin, be careful boet...this will get you fired!

  • Attie Gerber - 2013-10-23 15:42

    their pockets has already been filled so they don't care

  • Danie Baard - 2013-10-23 15:43

    When EFF takes over - the booze will be back at state functions! And the credit cards! Viva Comrade chief thief Malema! Viva Woodwork % Engliesh spellieng! Viva equality to all thiefs and chiefs! Viva! Viva!

  • Rakgoathe Bogoshi Matlala - 2013-10-23 15:45

    Since they agreed on this together, I hope they practice what they preach. It does not help to say what we want to hear, and do otherwise. And I hope there won't be introduction of more ministers and commissions of enquiry enforce all these agreements.

  • Dirk Hattingh - 2013-10-23 15:45

    Only now?

  • Nettie Potgieter - 2013-10-23 15:47

    Thanks floor crossing was stopped or you would have seen people running across the floor to the EFF seats.

  • Jacqui Daane Van Rensburg - 2013-10-23 15:47

    Oh! really?. Wait till after the elections next year than you can have all your goodies back again.

  • Lionel De Frontignac - 2013-10-23 15:48

    This show that the tax base is getting smaller...

  • Senette Pietersen - 2013-10-23 15:50

    Minister Gordhan, I take my hat off to you! Congrats! Brilliant mini budget! Just wondering why you couldn't have done this before it went so far as 103000R nandos account?! But NOT putting a damper on how awesome this budget is!! Greatness! Someone is taking a stand!!!

  • Cebo Dladla - 2013-10-23 15:52

    give that man a bell's & make him president.

      Mike Bundy - 2013-10-24 08:16

      Don't be too hasty. This is just a gesture, a red herring leading up to elections. The savings here are a drop in the bucket compared to the known dozens of billions that are being embezzled by government staff.

  • Jacqui Daane Van Rensburg - 2013-10-23 15:55

    Would this mean Zuma can't use two helicopters to get him to Nkandla?.

  • John Stoltz - 2013-10-23 15:56

    Since when does the ANC care about an unqualified audit ? According to Carte Blanche's interview, the Gov has not got resources to act against these thieving cadres, so they just turn a blind eye ! Gordhan, what is going to change overnight ?? Remember you are only a deployed cadre !

  • Lyzelle Scheepers - 2013-10-23 15:56

    STOP the Credit Cards ????What ????? They can't cancel their holidays in December NOW - won't get a refund !! Some are going to be VERY unhappy, they have not finished all their Christmas shopping - LOL

      Grant Wykerd - 2013-10-23 16:07

      LOL

      Sina Block - 2013-10-24 13:42

      LOLLLLLLLLLL what a blow

  • Grant Wykerd - 2013-10-23 15:57

    Talk is Cheap! And why now only!!!!!? Please, you're not fooling anyone.... Action and public 'lashings', coupled with extreme consequences is what's required... It's the correct consequences that will deter the perpetrators from continuing the pilfering of TAX payer funds meant for the upliftment of, not only the poor, previously disadvantaged but all South Africans, colour & creed set aside.... Stop the hate, blame game & excuses.....

  • Siphiwo Khuzwayo - 2013-10-23 16:00

    Should these measures be correctly implemented across fairly and equally, as a Nation, we will see the positive fruits in terms of savings etc. That saving may go a long way to totally uplift the struggling economies of our society at large. We need to see more cuts in the administration order. We need to have more schools built from this long-desired and awaited cuts. This also must go further in making a point that, there is no pay increase even to the President until there is a stable economy in the land. Citizens are so much taxed in this country and we need such interventions. Well done Pravin and to the ANC. I say this, because, ANC, is a collective.

      Nevin Narraidu - 2013-10-23 16:36

      Your argument is meaningful, thought provoking and sensible - and you have more thumbs down - makes me think that some on here see the name instead of the comment and give a thmubs down - voting according to traditional lines almost

  • Shireen Abbas Davids - 2013-10-23 16:02

    Pravin Gordhan for president ! YAY !

  • Japie JJ du Toit - 2013-10-23 16:05

    Here it come boys - more corruption, because KFC is going experience a great fall in sales. Those lekker bekke - are going to starve and hopefully getting thinner. Parvin it has been a long time coming, because the proof is in the pudding, they can't control the state funds, how can they even control the spending with the state credit card. Now get them to pay it back - all will full spending

      Mike Bundy - 2013-10-24 08:18

      Silly man, they won't starve. Now they'll just take it out of the petty cash fund.

  • Shireen Abbas Davids - 2013-10-23 16:08

    Pravin Gordhan for president ! YAY !

  • Robin Stobbs - 2013-10-23 16:09

    Twenty years too late! The horse bolted long time ago along with most of the country's expertise.

      Grant Wykerd - 2013-10-23 16:23

      You are still here! So there's hope....

  • Hazel Caldwell - 2013-10-23 16:10

    Watch the mad rush to fill up with all be perks, etc before the 1st December. Just watch the news.

      Grant Wykerd - 2013-10-23 16:17

      What news? You will never hear of this eventuality unless the DA raises the issue... As already eluded to; elections are coming and this is just a means to an end - and that 'end' is to keep ANC in power.... Recalling Zuma is all that is needed to ensure a total ANC victory! Anything else will just be lip service.... the end.....!

  • Hunter Tseke - 2013-10-23 16:11

    I think the first minister to cry out will be Mr Cummunist himself....

  • Sammy F. Simegi - 2013-10-23 16:12

    OOOOH ELECTION COMING UP HUH?

  • Khuliso Mutsha - 2013-10-23 16:26

    I am voting for ANC next year, no other party can do better than this current government.

      drsparky - 2013-10-24 13:07

      ...how do you know Khuliso? You are simply voting for the "evil you know". Your comment speaks of someone not open to options and other ideas. Consider EFF... consider Cope... consider DA... consider Agang... and also consider ANC. Don't just vote ANC because you voted for them the last time. THINK!! Blood was shed for the privileged for you to be allowed to think. USE IT!

  • Michelle Sauvage Ashford - 2013-10-23 16:29

    It's about bloody time, the government officials need to do the jobs they were put in the postion for and not waste our tax money !!!!!!!!!!!!!

  • Michelle Sauvage Ashford - 2013-10-23 16:31

    It's about bloody time, the government officials need to do the jobs they were employed to do and stop wasting the tax payers money !!!!!!!

      Sina Block - 2013-10-24 13:46

      Eish Michelle now they will say the government doesn't paid them enough

  • Victor Loftie-Eaton - 2013-10-23 16:41

    It is not the "legal" spending that is the problem - it is the money that slips through the cracks of corruption that amounts to Billions... and that they will say nothing about... put the measures in place to stop this daylight robbery...

  • Patrick Nolan - 2013-10-23 16:51

    Does this include Ikandla? Or is that pre-December so off the table? Gordhan said these would apply from December 1 and would spell an end to official credit cards, million rand vehicles, luxury hotel stays and expensive home upgrades for cabinet members.

  • Raul Curado - 2013-10-23 16:56

    Does he mean no more additions to the Naklanda Project District?

  • Ntlahla Tiva - 2013-10-23 16:56

    why act now minister?

  • Jane Hampson - 2013-10-23 17:26

    I think this is a good budget, very positive. It recognizes that misappropriation of funds has happened in the past and that they are correcting it, so in a sense you can only change what you acknowledge, so this is positive. I think SA has a good future, it will take time but if the government makes changes to the negatives only good can come. Do not reduce the government employees only because then you have less taxpayers and consumers and this hurts the economy as the USA has found.

  • Neil Moorgas - 2013-10-23 18:41

    About time to trim the tails of the Fat Cats! Why should South Africans be taxed to death only for some Fat Cat to benefit? This land of Milk and Honey is NOT exclusive to Civil Servants and their family and friends!

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