Taxpayers coughing up R2.6m for these suspended govt officials

Minister Jeff Radebe. Photo: Supplied

Minister Jeff Radebe. Photo: Supplied

Published Jul 4, 2018

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CAPE TOWN - Two major executives from the Department of Energy, who were suspended for close to a year, still receive salaries that cost tax payers R2.6 million. 

Minister of energy Jeff Radebe told Parliament that the officials were suspended for possibly having business interests with the State, according to Fin24. 

Theses interests were not declared and that is not prohibited according to the Public Administration Management Act in 2014.

Radebe said that the individuals declared their financial interests for the year 2017/ 2018 but did not declare three interests. 

Front Plus MP Anton Alberts probed the minister on how many senior management members were on paid suspension.

Minister Radebe acknowledged that two executives were suspended with full pay.

“There are currently two officials that are suspended on full salary. Both the employees are on post level 15. One employee was suspended on 19 May 2017, which is a total of 396 days. The other was suspended on 27 July 2017, which is a total of 327 days,” said Radebe.

The Energy minister said that the cost has amounted to R1,453,379.62 and R1,234,357.92, for each of the suspended officials.

South Africans contribute R1,93 to the RAF for every R16 that the spend on petrol reports Business Insider. 

12% of the petrol price goes towards the RAF that is double the amount in comparison to the 6% in 2008. 

The fund's levy on a litre of petrol has increased from 45c in 2008 to R1,93 in 2018. That is a 330% increase in a ten year period. 

In recent times the RAF has had a hard time paying road accident victims and last year, reported a loss of R34,7 billion. 

In comparison, the find received R33,3 billion mostly from the tax on fuel. 

Road Accident Fund

In other energy news Radebe disbanded the Road Accident Fund board last week because of serious divisions and dysfunction. 

Just recently the Sunday Times reported that the fund spends R500 000 a month to rent 300 chairs. 

Around 30% of the money that South Africans pay for petrol goes to taxes while factors like the global price of Brent crude oil, the strength of the rand against the dollar and transportation costs impact the other 70%.

When the minister announced the increase in fuel prices he said that the drop in the value of the rand to the dollar had a big influence in the petrol price increase. 

According to Radebe, the increase would have 30% more if the oil prices were not declining. 

-BUSINESS REPORT 

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