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.