State bans booze bills - new rules to help cut costs

Champagne being poured in glass Picture Credit: iStock
Champagne being poured in glass Picture Credit: iStock

The government has introduced another set of increasingly stringent cost-cutting measures, including banning farewell functions, sporting events and not paying public servants' booze claims.

In a bid to manage available state funds efficiently and economically, acting accountant-general Jayce Nair has told all departments, chapter nine institutions and state-owned entities that the government will not settle alcohol bills incurred by its employees or include booze in their accommodation or subsistence costs.

Nair's instruction, which came into effect last week, bars the financing of functions "that have a social element", including Christmas parties, team-building exercises, sporting events and budget vote dinners.

According to information obtained by Sowetan, Christmas parties and team-building exercises were banned in January 2014 and an employee of a government department said the institution had not had a year-end function "in a million years". Even outside sponsorship of social events is not allowed, reads Nair's instruction, dated September 30.

The government will also no longer pay for its employees' farewell functions unless they are leaving after 10 or more years' service or retiring due to ill health.

Directors-general will have an entertainment expenses limit of R4000 each a year.

In cases where a state entity has a board or controlling body, the R4000 entertainment allowance will be applicable to the entire collective and not individuals.

Former international relations and cooperation director-general Jerry Matjila had a R10000 annual limit on his state-issue credit card in May 2013 for official entertainment.

The department issued the credit card due to Matjila's official responsibilities and duties to host foreign dignitaries for lunches and dinners.

During last month's medium-term budget policy statement, Finance Minister Pravin Gordhan said the government had saved R650-million a year in printing and advertising costs by advertising tenders worth over R80-billion on the eTender online portal.

Gordhan and the nine finance MECs have also agreed to a joint action plan.

In March, National Treasury issued further cost-saving measures for municipalities on travel, consultants, catering, office furniture, events and staff benefits.

Nair said the Treasury would issue cost-containment measures applicable to ministers, their deputies, premiers and MECs once the revised ministerial handbook is finalised.

In September, Public Service and Administration Minister Ngoako Ramatlhodi said the revised handbook would be made public and applicable when approved by cabinet.

Cosatu spokesman Sizwe Pamla said the cost-cutting measures were introduced unilaterally without consultation and its public sector affiliates would take up the matter.

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.