SA government's excessive indulgence - R158m per month spent on luxuries

<p><span style="font-family:arial;font-size:130%;"><strong><span style="color:#990000;">The ANC government has spent R158-million a month, or R5.3-million per day, on travel, restaurant expenses and accommodation, the Democratic Alliance said on their website.<br /></span></strong><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoBZFaUJmsw5TikHMZLm6VmWEFLLO3LlbTM8QpzjKL9WaS-dwMxghXjEoFYuJ0NDTHN8nfIDJrB_YQY9mAIFK2n6pjln5-S_bHN5wzwxXwcrfqrxCj3sVefjVGylcg0s9ngXu8YO1y9tLE/s1600-h/anc-greed.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5443286698763805554" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoBZFaUJmsw5TikHMZLm6VmWEFLLO3LlbTM8QpzjKL9WaS-dwMxghXjEoFYuJ0NDTHN8nfIDJrB_YQY9mAIFK2n6pjln5-S_bHN5wzwxXwcrfqrxCj3sVefjVGylcg0s9ngXu8YO1y9tLE/s400/anc-greed.jpg" style="MARGIN: 0px 10px 10px 0px; WIDTH: 334px; FLOAT: left; HEIGHT: 226px; CURSOR: hand" /></a>Last year the Democratic Alliance set out in some detail the amount of money an ANC executive was spending on luxury cars. They also detailed the huge amounts being wasted on conferences and advertising.<br /><br />Across the board it appears that, wherever there is room for indulgence, it has been excessive and unnecessary, the DA said.<br /><br />The DA revealed that the problem extends to the amount government is spending on travel, restaurant expenses and accommodation. The DA asked a generic question to each national department and, of the 19 departments to have responded to date, between March 2008 and September 2009, a total cost of R1.7-billion has been incurred.<br /><br />The 19 departments represent roughly half of the national government. The DA estimates that the full cost, between all departments, runs in excess of R3-billion. This means that the ANC administration is spending about R158-million every month, or R5.3 million-per day, on travel, restaurant expenses and accommodation, the DA concluded.<br /><br />The five departments that have been identified as the biggest food spenders were:</span><span style="font-family:arial;font-size:130%;"> </span></p><p><span style="font-family:arial;font-size:130%;">•International Relations: R426-million<br />•Justice and Constitutional Development: R292-million<br />•Labour: R159-million<br />•Public Works: R134-million<br />•Rural Development and Land Reform: R134-million<br /><br />The DA also found that the Department of Finance was making extensive use of first class travel and could have saved a significant amount of money had it used economy class.<br /><br /><strong><span style="color:#990000;">Good relations cost R426m<br /><br />Hundreds of millions in accommodation and travelling expenses</span></strong><br /><br />The international relations and co-operation department has confirmed spending R426-million on travelling, accommodation and catering from March 2008 to September 2009.<br /><br /><strong><span style="color:#990000;">The Business Day reported last Friday that national government departments ran up bills of more than R3-billion on luxury travel, restaurants and accommodation over 19 months.<br /></span></strong><br /></p></span>

SA government's excessive indulgence - R158m per month spent on luxuries

The ANC government has spent R158-million a month, or R5.3-million per day, on travel, restaurant expenses and accommodation, the Democratic...

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Government audit disaster

<p><span style="font-family:arial;font-size:130%;"><strong><span style="color:#990000;">Weak leadership and the high turnover of top executives are fuelling the dismal audit performance of government departments and institutions funded by the taxpayer, the auditor-general's office and the Treasury told MPs.</span></strong><br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZs60N0wGgXPtOBViBx9rrSojDqKblkngjSIWaq28Y3m4Jy_zG32tGHnfBQY3AGK0ySFUcApyE-kSIbyU9zvDWLnu2UBekW6yKnI_YgHk6i8MIq6Pf34h-_wMawo5aHLxvNBcj6q4Lt_B4/s1600-h/AUDIT+state.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5431510017075007218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZs60N0wGgXPtOBViBx9rrSojDqKblkngjSIWaq28Y3m4Jy_zG32tGHnfBQY3AGK0ySFUcApyE-kSIbyU9zvDWLnu2UBekW6yKnI_YgHk6i8MIq6Pf34h-_wMawo5aHLxvNBcj6q4Lt_B4/s400/AUDIT+state.jpg" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 300px; CURSOR: hand; HEIGHT: 292px" /></a>At the first parliamentary committee meeting of the year, officials from the two offices said there had been little improvement since 2008 in the overall performance of the 256 operations funded by public money.<br /><br />They were giving a high-level overview of the trends shown in audit reports released last year.<br /><br />Only 91 out of the 256 entities achieved a clean audit in the financial year to March 2009.<br /><br />Eight were so poorly run that no audit was possible, two were given adverse audits, meaning they had generally failed to implement proper financial management, and 33 received qualified audits indicating severe failures.<br /><br />Another 118 produced adequate financial statements, but had issues ranging from inadequate documentation that was completed only with help from auditors to serious but correctable lapses of financial or asset management.<br /><br />In percentage terms, the number of state institutions gaining a clear audit has slipped from 38% five years ago year to 35% last year.<br /><br />"It is a disappointing and concerning picture in that the pace of change is slow," said Jillian Bailey, head of audit in the auditor-general's office.<br /><br />"Adequate leadership involvement and oversight must set the tone from the top and create an environment conducive to good financial management and service delivery."<br /><br />Warning of a downward trend in some areas, Bailey said 88% of government departments were showing signs of failure in human resource management and 86% of dangerously inadequate information system security.<br /><br />Kimi Makwetu, the deputy auditor-general, said things would not improve until the top leadership of departments and government entities became committed to ensuring proper financial management.<br /><br />"We're talking about basic disciplines. It has not yet moved to the level of complexity of accounting and financial management."<br /><br />Six officials from the two departments painted the same picture of poor top-level leadership and uncertainty created by the high turnover of chief executives and chief financial officers.<br /><br /></span><span style="font-family:arial;font-size:130%;"><blockquote><p><strong>Even the presidency, the department of defence and the public protector received qualified audits last year. </strong></p><p></p><p></p><p></p><p></p><p></p></span></blockquote><span style="font-family:arial;font-size:130%;">The officials said things would not improve significantly until top executives accepted personal responsibility for the crisis.<br /><br />The auditor-general does not oversee state-owned enterprises such as Eskom, Transnet and SAA, but the concern about leaderless public institutions comes amid a crisis that has left all three, as well as the arms companies Denel and Armscor, which received a clean audit last year, with acting chief executives who are unable to take strategic decisions.<br /><br />Bailey said the biggest failing among national government departments was in the management of capital assets ranging from land to buildings and equipment. She said nearly all departments lacked the skills to properly track what departments owned.<br /><br />State entities mainly had problems controlling income and expenditure. These entities range from the South African Local Government Association, which could not produce auditable financial records, to sector education and training authorities, the National Prosecuting Authority, the Robben Island museum and the Council for the Built Environment.<br /><br />MPs from all parties vied to deliver the sharpest rebukes after hearing the overview.<br /><br />"Sometimes one thinks that some of these departments are being run like a spaza shop," said Narend Singh of the IFP.<br /><br />Picking up the theme, the ANC's Sarah Mangena said the Treasury should help in the selection of chief financial officers: "You find that we take a person just because this person was good at arithmetic, but this person really can only run a spaza shop. This person cannot run a department's budget."<br /><br />Mangena took a tough line on corruption, too: "If a person has taken R104-million, why can't this person bring that money back. If he can't, let him sell his wife and children so we can recover this money."<br /><br />Deetlefs du Toit of the DA was among MPs who demanded to know how the government planned to break the pattern of poor financial management. "I don't know whether to call this a catastrophe or a disaster," he said.<br /><br />MPs also complained that the auditor-general's report is similar every year with little progress in enforcing recommendations. </span><p>

Government audit disaster

Weak leadership and the high turnover of top executives are fuelling the dismal audit performance of government departments and institutions...

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South Africans fleeced by taxes

<p><span style="font-family:arial;"><em><span style="font-size:85%;">Fin24.com reporter</span></em></span></p><p> <span style="font-family:arial;font-size:130%;"><strong><span style="color:#990000;">The sad reality is that South Africans are being nickled and dimed to death and there may be more to come, says Finweek in its latest cover story.</span></strong></span><span style="font-family:arial;"><br /><br /><span style="font-size:130%;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj71nwIMBAk_9liKhZ37o24tdtHdIdFDQHDoZVB2a0nt6eHbEFcmxuSSy2OzUnT3JrC2tRF4iXNXKiVMO0AAA3w93Ot-9G1Cf9xfQeuAzGfwS8ELllvsnXdco-cxgIOmkOD-RzkN4UeEvc/s1600-h/tax_image2.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5401720099291804690" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj71nwIMBAk_9liKhZ37o24tdtHdIdFDQHDoZVB2a0nt6eHbEFcmxuSSy2OzUnT3JrC2tRF4iXNXKiVMO0AAA3w93Ot-9G1Cf9xfQeuAzGfwS8ELllvsnXdco-cxgIOmkOD-RzkN4UeEvc/s400/tax_image2.jpg" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 268px; CURSOR: hand; HEIGHT: 213px" /></a>Tax experts reckon South Africans are among the most heavily taxed people almost anywhere on earth.<br /><br />In fact, Finweek calculated that some South Africans pay a tax rate of 60% even though the official top tax rate - known as the marginal tax rate - is 40%. This is owing to a myriad of hidden taxes.<br /><br />Hidden taxes include the cost of health and security; travel taxes such as airport and toll road levies; import taxes; and the 10% property rate tax and VAT payable on water and electricity.<br /><br />This is one of the findings contained in Finweek's latest cover story which also examines the viability of a potential increase in personal tax as mooted by Finance Minister Pravin Gordhan in September.<br /><br />Such is the burden on South African consumers that individuals expect to pay more tax than first budgeted in the 2009 budget and certainly more than corporates - much more, in fact.<br /><br />According to the budgeted figures released in February this year for the financial year ending in February 2010 it was estimated individuals and trusts would contribute R207.5bn (of total tax revenue of R659.3bn), whereas companies were budgeted to contribute R160bn.<br /><br />Finweek said that currently, 25% of individual taxpayers pay 75% of all personal income tax, which contributes close to 30% of total revenue to the fiscus.<br /><br />"That's massive in anybody's terms and needs. Individual taxpayers are also subject to value added tax (VAT), capital gains tax (CGT), donations tax, estate duty, transfer duties and un-certificated securities tax (UST), just to name a few.<br /><br />"That takes their contribution way above 60% and an individual tax burden equal to more than half of annual personal consumption spending," Finweek said.<br /><br />Carolyn Freeman, director of International Executive Services at KPMG, said that the marginal rate of tax in South Africa takes effect at a relatively lower income level than many other countries.<br /><br />As a result, individuals in South Africa remain among the highest taxed worldwide. That means South Africa's marginal tax rate - the highest rate that can be paid - is applied at a lower income group in South Africa than that of other countries.<br /><br />Said Freeman in an interview with Finweek: "So if I get paid R50 000 here in South Africa, I'll be taxed 40% on that, whereas if I were paid the equivalent in US dollars I'd only be taxed 28.9%."</span><br /><br />- Fin24.com </span></p>

South Africans fleeced by taxes

Fin24.com reporter The sad reality is that South Africans are being nickled and dimed to death and there may be more to come, says Finweek ...

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‘Give us R1bn – or else!’

<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgisAAaifMzl4zVuCV0DzHjQvqqffk6hCQylyEdX6NfJqMC-TP9l5-fdo_hJhYN_iAc1ZgOtTrOlZbNFIkHZV2pwba947-5vjbsCh5-XesYDSqFvz_5NNm6Epz_cIkM6pmhH9-1jkWtwd0/s1600-h/ancyl-malema.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5400016459390719794" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgisAAaifMzl4zVuCV0DzHjQvqqffk6hCQylyEdX6NfJqMC-TP9l5-fdo_hJhYN_iAc1ZgOtTrOlZbNFIkHZV2pwba947-5vjbsCh5-XesYDSqFvz_5NNm6Epz_cIkM6pmhH9-1jkWtwd0/s400/ancyl-malema.jpg" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 290px; CURSOR: hand; HEIGHT: 177px" /></a><span style="font-family:arial;font-size:130%;">ANC Youth League president Julius Malema launched a scathing attack on the Minister of Finance Pravin Gordhan on Saturday for not including the youth in his recent Medium Term Budget Policy Statement.</span><br /><span style="font-family:arial;font-size:130%;"></span><br /><span style="font-family:arial;font-size:130%;"><em><span style="font-size:78%;color:#000099;">VIVA: Julius Malema speaks at the 65th anniversary of the ANCYL, hosted at the Rotary Stadium in Mthatha at the weekend.</span></em><br /><br />Malema was speaking to about 10 000 Youth League members during the 65th anniversary celebration of the youth movement at Rotary Stadium in Ngangelizwe in Mthatha at the weekend.<br /><br />The firebrand and controversial youth leader said the youth league wanted Gordhan to give R1billion to the newly formed National Youth Development Agency (NYDA).<br /><br />The NYDA is headed by Malema’s deputy, Andile Lungisa.<br /><br />“We are making a call to our minister of finance to put money in the NYDA, because even when he spoke there, he said nothing about the youth,” Malema said.<br /><br />He was not sure if “this minister” knows that South Africa has young people, he added.<br /><br />“I don’t know why this minister is not budgeting for the youth. He is creating a hostile environment with the wrong people,” Malema said, while President Jacob Zuma, who was also at the rally, looked on smiling.<br /><br />The only way that Gordhan could apologise was to put not less than a billion into the NYDA’s account.<br /><br />“Failure to put more money into that account, comrade Pravin, will make you know us (youth) better. You must ask those who came before you … they would tell you what it means to make the youth of South Africa angry.”<br /><br />Malema said that they did not want to be angry with Gordhan but simply demanded what was due to them.<br /><br />“We qualify for this money; we are not begging, we are calling because it is our right to receive this money, we want more money that will service these young people.”<br /><br />Malema’s criticism of Gordhan coincided with his call for African leadership in the economic sector of the country.<br /><br />He said it was not enough that a black person was minister of finance but that a black person was needed in the Finance Ministry.<br /><br />He said when former president Thabo Mbeki appointed former deputy minister of finance Jubu Moleketi he thought that there was a clear succession plan in that department.<br /><br />“Comrades, we must make sure we fight for an African leadership in the economy; it’s not a secret we have never had an African minister of finance. It cannot be just because we want to nurse the markets.<br /><br />“We are told that Africans are incompetent, they cannot handle finances and complicated issues of the economy; there must be a deliberate effort to empower Africans.”<br /><br />He said that political power was useless as long as there was no economic power.<br /><br />He told the audience they could vote until they were green but without economic power their vote was useless.<br /><br />“We must fight the real struggle of the attainment of economic power.”<br /><br />He called on the NYDA to be more vigilant and to put the interests of young people at the heart of their function.<br /><br />He said in each and every local municipality there should be an office of the NYDA to service the needs of the youth.<br /><br />He also called on NYDA to be at the forefront of the fight against ukuthwala, a practice mostly done in the Pondoland areas of forcing young girls into marriage.<br /><br />“In the immediate (future) the agency (NYDA) must fight ukuthwala. This thing of marrying young kids at an early age by old men who cannot propose to people of their own age must come to an end,” Malema said to loud applause from the crowd. </span></p>

‘Give us R1bn – or else!’

ANC Youth League president Julius Malema launched a scathing attack on the Minister of Finance Pravin Gordhan on Saturday for not including ...

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Communist gets S Africa finance job

<p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXsSvzRZTobxT2LnZ77tdGPmqE1EpzGC7IFa2Etc1I1GMU_SOcAajWLK7ZSJvBC8Z357eS8pZVnsZp05lfKkFlKp9KyLGYhA5zSP6ERfOOK75lcSq1XiG7tX1N5VVjtOrbZcJ5viEbQshl/s1600-h/finance-minister-Pravin+Gordhan.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5334261895789892658" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXsSvzRZTobxT2LnZ77tdGPmqE1EpzGC7IFa2Etc1I1GMU_SOcAajWLK7ZSJvBC8Z357eS8pZVnsZp05lfKkFlKp9KyLGYhA5zSP6ERfOOK75lcSq1XiG7tX1N5VVjtOrbZcJ5viEbQshl/s320/finance-minister-Pravin+Gordhan.jpg" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 294px; CURSOR: hand; HEIGHT: 320px" /></a><span style="font-family:arial;font-size:130%;"><strong><span style="color:#990000;">President Jacob Zuma has laid rest to speculation over who will head the Finance Ministry by announcing South African Revenue Service boss Pravin Gordhan Finance Minister.</span></strong><br /><br />Gordhan was Commissioner of the South African Revenue Services (SARS) and is widely credited for having managed to improve tax collection substantially over his period in office.<br /><br />He joined SARS in 1998 as deputy commissioner and 1999 was appointed as commissioner.<br /><br />Meanwhile, his predecessor Trevor Manuel will lead new National Planning Commission.<br /><br />Other appointments include mining magnet, Tokyo Sexwale, who has been named as Minister of Human Settlement, the former department of housing.<br /><br />Sexwale is founder and Chair of Mvelaphanda Holdings a company which primarily focuses on mining and energy.<br /><br />Zuma made the Cabinet pronouncements on Sunday at the Union Buildings in Pretoria.<br /><br />The announcement has given strong indication as to who President Zuma wants to work with and how he plans to manage government for the next five years. </span><p><br /><br /></p>

Communist gets S Africa finance job

President Jacob Zuma has laid rest to speculation over who will head the Finance Ministry by announcing South African Revenue Service boss P...

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