Durban - Vacant posts have been frozen in KwaZulu-Natal government departments and officials have been ordered to ensure “total enforcement” of cost-cutting measures.
The cash squeeze, which emerged in a circular sent to department heads by provincial Treasury head Simiso Magagula, was the result of higher than budgeted for salary increases for civil servants.
The circular detailed updated cost-cutting measures after the provincial executive met in August and last month to consider the shortfall.
The government in May agreed to a 7% increase in civil servant salaries, along with increases in housing and medical aid.
Magagula said KZN was short of R1.748 billion in the current 2015/16 financial year, and this was expected to increase to R2bn in 2017/18. The shortfall for national government and the nine provinces was R12bn, he said.
“National Treasury has indicated that it can only fund R5bn from its contingency reserve of the R12bn shortfall, consequently the province will only receive R877 million to cover the provincial shortfall,” Magagula said.
This means that KZN will have to cough up R871 million from its own funds.
This happens as the province’s contingency reserve is capped at R750m.
“While the provincial treasury is able to fund the shortfall in the current year, carry-through costs of the wage agreement cannot be funded from the provincial baseline,” Magagula said.
The provincial executive council has since decided to implement additional cost-cutting measures to control spending and ensure departments absorbed the shortfall.
“All vacant posts to be frozen with immediate effect for both departments and public entities.
“If there are any absolutely critical posts that need to be filled, a submission by the executive authority (MEC) must be made to the premier and MEC for finance for approval,” Magagula said.
He said departments and public entities should ensure “total enforcement” of cost-cutting measures.
“Lavish and expensive events will not be approved by provincial treasury,” he said.
Plans by departments and public entities to sponsor events would now have to be forwarded to provincial treasury.
“The submission must indicate what value for money will be achieved and what aspects of the proposed events are being sponsored,” he said.
Provincial government spokesman Thami Ngwenya said austerity measures were necessary to ensure KZN met its obligations for funding the shortfall.
He said only critical posts would be filled, depending on the nature and strength of the motivation made.
The DA’s Francois Rodgers said the freeze on vacant posts would affect service delivery.
The EFF’s Vusi Khoza said the public service was bloated and needed to be re-engineered.
He said the MECs’ bodyguards and multiple vehicles should be curtailed and the “Taking Legislature to the People” programmes stopped.
The IFP’s Blessed Gwala said the non-filling of posts prompted questions on what constituted “critical posts”.
“You can’t say a position is critical. Why is it created in the first place?” he asked.
Daily News