Times of Eswatini

Government to seal leak - economist

-

MANZINI – It is about time government seals the leak in its revenue, says an economist.

The economist said the initiative pursued by government in procuring its fleet was cost-effective and would transfer all the responsibi­lities to the financier. The economics scholar said this would cut the budget for maintenanc­e. +e emphasised that government should also align this programme with serious fleet management, as the availabili­ty of the vehicles may not necessaril­y curb their abuse. +e was optimistic that government would save millions of (malangeni.

Regulation­s

The economist said government stood to make huge savings if the proposed model was implemente­d properly. +e said currently, managing the government fleet was a drain to the taxpayer as the vehicles were abused and the regulation­s were relaxed in terms of disciplini­ng employees found in the wrong. Meanwhile, it is envisaged that government would also discard some department­s within the civil service. It was said those who would be affected shall be offered an opportunit­y to tender for government Mobs. This, the economist said, would create Mob opportunit­ies, which would absorb some of the unemployed graduates into the active labour sector. &urrently, the unemployme­nt rate is said to be at 33.3 per cent as per the 202 /abour Survey 5eport by the Ministry of /abour and Social Security. It is worth noting that the Minister of )inance, 1eal 5iMkenberg, in his budget speech last year said ³The establishm­ent of a 5oads $gency )und has been tabled in this house, as a sustainabl­e and permanent solution to our roads crisis.

Maintenanc­e

³The obMective of this fund is to tender out all roads maintenanc­e to the private sector.´ +e said government envisaged it to be funded by the savings from shutting down government department­s currently responsibl­e for road maintenanc­e, the road toll charges at the border crossings, additional funds from the fiscus and an additional 30 cents fuel tax that he intend to table with the )uel Tax %ill. $t the time, he said discussion­s with the affected civil servants had started and he invited them to use their retrenchme­nt packages to form companies which would do the actual maintenanc­e work as government would like to see the 5oad $gency )und empower smaller local roads contractor­s.

Newspapers in English

Newspapers from Eswatini