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Zuma cabinet to cost SA tax payers R1.3 billion
Zuma cabinet to cost SA tax payers R1.3 billion

Zuma cabinet to cost SA tax payers R1.3 billion

SERVICES NEWS

BusinessTech.co.za - Jun 26th 2014, 12:03

The Democratic Allinace has revealed that President Jacob Zuma’s new additions to his cabinet will cost tax payers approximately R36 million. 

It follows a reply to a DA parliamentary question, which noted that it will cost R8million and R4 million for the establishment of every new ministry and deputy ministry respectively.

President Zuma’s cabinet is set to cost South Africans an estimated R1.3billion by 2016, the DA said.

The president announced his new cabinet towards the end of May, including the launch of a new Ministry of Telecommunications and Postal Services, led by former Minister of State Security, Siyabonga Cwele.

The communications department was also reconfigured to include more functions, led by communications minister, Faith Muthambi.

MyBroadband recently calculated that with 35 ministers’ and 37 deputy ministers’ salaries to pay, President Zuma’s new cabinet would cost South Africa over R143 million a year – excluding benefits.

It noted that the South African president currently earns R2, 622,561 per year, while his deputy gets R2,478,378 per year.

Every minister gets paid R2, 106,607 per annum, while deputy ministers earn R1, 734,835.

“With no available leg room in the government’s existing budget, new ministries are to be financed by siphoning off resources from other government departments,” the DA said.

It said that the reply also revealed that no formal cost–benefit analysis was conducted prior to the formation of the Department of Small Business. Rather, it is merely “expected” that the new department will be cost effective.

As part of an extended Cabinet, President Zuma also announced the formation of a new ministry to foster the development of small business development, under the lead of Lindiwe Zulu.

“It remains unclear whether cost–benefit analyses were conducted prior to the formation of the remaining new ministries.

“Instead of new government departments, South Africans require a drastically streamlined public service,” the DA said.

This, it added, could be achieved by cutting redundant ministries such as the Ministry of Economic Development which proven ineffectual over the last five years.

The DA has already submitted a set of questions to further determine the exact amount President Zuma’s bloated new Cabinet will cost South Africans with respect to the following items:

Budget Vote Cocktails;
Car Purchases;
Car Rentals;
Catering and Entertainment;
Credit Cards;
Furniture and Renovations;
Flights and Accommodation; and
Irregular and Wasteful Expenditure

“With a depressed economy that is struggling to create jobs, now more so than ever, government cannot afford any unplanned and uncontrolled expenditure,” the DA said.
From 2014 Copyright, BusinessTech. All right reserved. 

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