#Budget2016 List of 75 people cost South Africa billions every year : #75PeopleCostSABillions
President Jacob Zuma’s bloated Cabinet has come under fire by opposition parties and business leaders, who demand that the “fat be cut” in order to save South Africa billions annually.
Zuma recently met with South African business leaders, to search for ways to kick start a process of economic growth and avoid a ratings downgrade to junk status.
Among the suggestions was a question on the size of Cabinet, with a recommendation that it be downsized to reduce excessive spending.
Reports however, suggest that the president was non-committal to any such move.
The Democratic Alliance believes that the country could function effectively with only 15 ministries, after party leader Mmusi Maimane detailed the party’s vision to streamline national government, thereby saving R4.6 billion annually.
The president has also acknowledged the impact of his Cabinet on spending – albeit in a roundabout way.
During his state of the nation address earlier this month, Zuma said that South Africa should only have one capital city, because having two cities doubled the costs of ministers to perform their duties – with the need for cars and houses on opposite sides of the country.
The bloated Cabinet
South Africa’s Cabinet comprises 35 ministers, 38 deputy ministers and the president and deputy president.
According to Africa Check, the salaries for these individuals sets the country back a minimum of R150 million a year – excluding all the benefits afforded to them courtesy of the ministerial handbook.
Each one of the 70 ministers and deputies are paid an annual salary of just over R2.2 million, while the president and his deputy are paid R2.6 million each.
When taking into account that each minister is provided with an allowance to purchase a private vehicle at 25% of their salary (totalling a further R36 million), two official vehicles (for use in Pretoria and in Cape Town), as well as a state house in a capital of their choice – the total bill increases significantly.
In 2014, the Sunday Times calculated that Cabinet’s total bill – including perks, private security, support staff, flights and spousal support – amounted to R1.6 billion a year (R1.1 billion minimum) and well over R5.6 billion over 5 years.
This averages R12.8 million per minister, R9.6 million per deputy minister – and as much as R312 million for the president.
Source : businesstech
0 Comments