State promises to focus on NDP goals

GOVERNMENT will set a cap on the use of consultants, place limits on what it spends on litigation and penalise departments and state entities for bad governance by withholding transfers and guarantees.

Minister of Planning, Monitoring and Evaluation Jeff Radebe said yesterday that this was part of the state’s plan to reprioritise funding to meet the goals of the National Development Plan (NDP).

Speaking at a media briefing ahead of the fifth anniversary of the NDP’s adoption on September 12, Radebe said the cabinet approved Mandate Paper 2018 last month to guide the budgeting process.

With limited resources, the overall medium-term budget for 2018 could not be increased, meaning government would have to reprioritise funds to pay for the implementation of key areas in the NDP.

“We are not going to be rewarding bad governance or lapses in good corporate governance. The mandate paper is both a stick and a carrot,” he said.

According to Radebe, aggressive cost-saving measures would include:

Limiting the use of consultants through capping this expenditure item.

Strict limits on contingency liabilities and litigation costs by working with the Department of Justice to determine cases to be defended or for arbitration;

Optimising state procurement by setting pricing parameters and centralising procurement of major items, as well as improving contract management and procurement compliance.

Improving returns and value-for-money from state infrastructure projects, also through combating collusion and strengthening project management to prevent cost escalations due to delays.

Insisting on good governance and penalising lapses in governance by withholding transfers and/ or guaranteesRadebe said the Mandate Paper was developed along with National Treasury.