Johannesburg - The National Youth Development Agency (NYDA) has blasted the DA for claiming that it has been spending 45 percent of its budget on salaries.
Executive chairman Yershen Pillay said on Saturday that the agency’s wage bill accounted for 38.2 percent of the budget, although he acknowledged that this was too high.
He said the agency had decided to cut its wage bill by 30 percent. This would save R37 million, which would be redirected to youth development projects.
The NYDA, formed through a merger of the National Youth Commission and Umsobomvu Youth Fund, has been under pressure for wasting millions of rand on the World Festival of Youth, dubbed the “Kissing Festival” in 2010 and its top brass.
During question time in the National Assembly this week, DA MP Michael Cardo asked Deputy Minister in the Presidency Buti Manamela whether he was taking concrete steps to reduce the agency’s wage bill, which he said accounted for 45 percent of its budget.
Cardo said senior managers of the NYDA were earning fat salaries and these needed to be reduced.
Replying, Manamela said steps were being taken to reduce the agency’s wage bill.
“The NYDA has presented to the portfolio committee – that the Honourable Cardo is included in – their reorganisation strategy, which would result in the reduction of not only top management but also savings of close to R37m,” he said.
“Consultations are being concluded with the people affected, because we have laws that govern labour in this country.
“We are hoping that by the end of August, we will have put in place the new system, the new structure which will lead in all of this. The savings of more than R37m we will redirect, or the NYDA will redirect, towards services for young people.”
Pillay said the Auditor-General, Kimi Makwetu, had found that the wage bill was not 45 percent but 38.2 percent of the agency’s budget.
He said, however, that even at 38.2 percent, it was too high.
Parliament had accepted the agency’s reviewed structure.
By next year the NYDA would have a leaner structure, said Pillay.
He said that consultations with staff affected by the changes in the structure of the organisation would take place in line with the labour laws.
Two years ago the NYDA moved away from providing loans to a grant funding programme.
The NYDA said that the scrapping of the loans scheme would save it money.
Money would be distributed to a larger number of young entrepreneurs and co-operatives.
Political Bureau