Cost-cutting steps changed

The National Treasury does somersault

The National Treasury appears to have watered down cost-cutting measures introduced during axed finance minister Pravin Gordhan’s tenure because they were “impractical to implement” and posed “difficulties to ensure full compliance”.

Acting accountant-general Jayce Nair made the announcement to provincial treasuries, national and provincial government departments and other state entities in a new instruction that came into effect on May 15, the same day it was issued.

Nair also released the costcontainment measures that were amended in September last year. Gordhan was replaced by Malusi Gigaba in March.

The National Treasury Instruction No. 03 of 2017/18 notes that it has come to light that “certain provisions are impractical to implement hence posing difficulties to ensure full compliance”.

The new instruction removed the following:

That annual cost containment

● plans be developed every year as part of strategic and/or annual performance planning.

The requirement that the approval

● of attendance at external conferences and events (in SA) exceeding R2 500 a day and external conferences, events and study tours costing over R60 000 per employee be disclosed in annual reports.

Another requirement that

● monthly reports of cost containment measures be submitted to the National Treasury and cost-containment information be included in annual reports.

The September 2016 instruction required that departments and state entities sending officials to conferences or events disclose how they advanced their missions. They were also required to provide descriptions of the contracting procedures followed to secure venues.

Departments and public entities also needed to disclose in their annual reports the total and breakdown of expenses incurred in venue hiring, food and beverages, speaker fees as well as the use of audiovisual and other equipment.

The National Treasury will also no longer monitor reporting on cost-containment measures every month.

DA deputy shadow finance minister Alf Lees said the amendments sounded quite serious and gave free rein to officials to ignore cost-containment measures. “Now who is going to conduct oversight over them?” he asked.

Gordhan first introduced cost-containment measures through National Treasury Instruction No. 1 in 2013/14.

/ ANTONIO M U C H AV E The National Treasury has done away with certain measures to cut costs. The DA says the changes give free rein to officials to ignore cost containment measures on, among others, food and drink.