DA KwaZulu-Natal finance MEC, Francois Rodgers. (X)
KwaZulu-Natal government employees will no longer have Christmas parties or year-end functions — unless they pay for them out of their own pockets — in terms of new cost curtailment measures introduced by the province’s finance MEC, Francois Rodgers.
Rodgers has also shot down the provincial gravy plane, with new restrictions on MEC and senior civil servants to slash KwaZulu-Natal’s hefty international flight bill, and has put the brakes on spending on car hire by the blue light brigade.
The cost cutting measures are contained in a treasury instruction note issued by the head of provincial treasury, Carol Coetzee, to immediately cut back on wasteful or frivolous spending and channel the money towards delivering services. It kicked in on 1 November.
Chief executives and heads of department have also been reminded of their duty to ensure that any spending as a result of directives from their MECs is in line with the Public Finance Management Act to avoid “unfunded commitments”.
“The aim of the cost-cutting measures is to reduce expenditure on the ‘nice-to-haves’ and
to redirect these funds to service delivery areas,” Coetzee said. “Accounting officers and accounting authorities are responsible for ensuring that all employees are mindful of the current economic realities and the need to intensify efforts to improve efficiency in expenditure.”
While departments and entities are permitted to fill critical vacant posts, they must be paid within salary baselines and permission must be obtained from the premier and finance MEC, who must also provide consent for filling future vacancies.
Employees may no longer convert leave into pay, while entities have been banned from paying performance bonuses, while chief financial officers have been instructed to strictly control overtime.
All departments have been ordered to clean up their PERSAL (payroll) to remove duplicate cost centres, pay point codes and unfunded vacant posts and conduct regular headcounts to identify ghost employees from the system.
External workshops and meetings will now be held in government venues rather than private ones, while marquees will only be considered for large events that cannot be accommodated in government or community facilities.
Team building exercises will no longer be held, along with year-end or Christmas functions, “unless paid for by the employees themselves”.
Departments have been instructed to undertake only essential trips and to use online meeting platforms wherever possible.
Mileage rates would have to be standardised and paid at basic public service rate, with a monthly cap of 1 750km enforced. Officials travelling outside the province would have to use a single vehicle and coordinate between departments to share, should they be attending the same meeting or event.
Overseas trips have been “drastically rationalised” and will now need prior cabinet approval, with delegation sizes to be “kept to a minimum” as part of the cost cutting, which aims to reduce the travel spend by 25%.
Supply chain managers have been placed on terms they will be charged should they approve any unfunded spending — items which are not in the budget — or make payments beyond those budgeted for.
Office equipment and furniture will be purchased at standardised rates and in line with civil service grading across entities and departments, while annual performance plans, speeches, annual reports and other state documents would be submitted to the legislature with no printed documents being required. Where government documents were printed, “gold and silver embossed letterheads or covers may not be used”.
All departments were instructed to ensure that ministerial vehicles be procured through a central contract and that orders be placed with the treasury by 15 November.
Rental for vehicles in the interim has been capped at R70 000 a month (including 8 000 free kilometres) and a maximum of R16 for additional kilometres.
Accounting officers and chief executives have been instructed to report quarterly on total expenses on conferences and events, international travel and sports days to cabinet and treasury.
The treasury would in turn report on all areas of non-compliance so that the various MECs “take corrective action where required”.
“Officials who have not complied with the Instruction note will be deemed to have breached the financial prescripts and consequence management must be applied in these instances,” it concluded.