Free Newsletter
 Subscribe Now
 BR Blog

 HOME
Wasteful spending gets attention  Comments

State departments spent about R6.6bn on consultants

November 9, 2009

By SLINDILE KHANYILE


The government was looking at ways of eliminating wasteful expenditure - including unfocused consultant contracts - to effect savings, Thoraya Pandy, the spokeswoman for the National Treasury, said on Friday.

State departments at national level spent an estimated R6.6 billion on consultants and contracts between 2005 and last year, according to the Estimates of National Expenditure published by the Treasury. Last week the auditor-general said national and provincial departments were expected to spend R7.4bn on consultants in 2009/10 financial year.

Finance Minister Pravin Gordhan is part of the ministerial task team that has been set up to effect savings in the government. Pandy said the process of the task team would involve three phases.

"In phase one, (the) government will cut wasteful spending, including on unnecessary conferences, travel, entertainment, consultants and luxuries," said Pandy.

"Phase two will look at rationalising entities and agencies, shifting resources from back-office operations to frontline services and reform procurement processes. Phase three involves the comprehensive expenditure review."

Terence Nombembe, the auditor-general, said his office were assessing if the government was getting value for money from using these additional services and would report on the findings early next year.

The government was spending a lot of money on consultants and needed to check if maximum value was derived from these services, he said. Consultants should not be used to substitute inefficiencies, but rather for providing specialised skills that would not necessarily require permanent posts, he said .


Patrick Craven, the spokesman for Cosatu, said the organisation accepted there might be exceptional circumstances that might require the use of consultants.

"But in general, the government should recruit its own experts because that not only saves money, but it gives the government more control on the process," said Craven.

The DA's Dion George said the party backed Nombembe's call to scrutinise the use of consultants because there was an excessive utilisation of these services.

George added: "What happens is that the government drives away qualified people through cronyism then they get consultants. It's really duplication. There is a place for consultants in specific projects, but what they are doing is that they are using consultants for jobs that should be done by other people or projects that never get anywhere."

He said reducing the use of consultants was one of the easiest ways to cut spending.

Meanwhile, Nombembe said his office would add a dedicated audit on supply chain management from next year.
BOOKMARK THIS STORY

Social bookmarking allows users to save and categorise a personal collection of bookmarks and share them with others. This is different to using your own browser bookmarks which are available using the menus within your web browser.

Use the links below to share this article on the social bookmarking site of your choice.

Read more about social bookmarking at Wikipedia - Social Bookmarking

Showing page 1 of 1 comment pages, 4 total comments
13 Weeks ago Lupercus wrote :
Wasteful spending is not the only problem! We have to deal with fraud, corruption, incompetence, outright theft and inefficiency along with nepotism. In Ekurhuleni a contract worth R1,2 million was awarded to the Mayor's (Duma Nkosi) teenage daughter and Mkhabela Sibeko's teenage son. Neither of whom had a business until immediately prior to the award of the contract. No tender process was implemented. And both have family connections. Sibeko's disciplinary on this issue was squashed and Nkosi is now Chairman of the EDI after being redeployed as EMM Mayor. Nkosi has no qualifications other than being an ANC hotshot. He virtually bankrupted the Ekurhuleni Metro single handed with his ego trips and wasteful spending. How can a former shop steward handle a R12 billion budget??? Will whoever is investigating this waste of taxpayers money take a long hard look at politicians salaries from National to Local level? I think not! Politics has now become big business with Ministers, most without any degree or tertiary education receive (I cannot use the term earn!) bigger salaries than most CEO and MD's who have the education, degrees and experience. When a part-time councillor receives a salary of R26 000 monthly plus perks one starts to see why our country is sliding into the Zimbabwean mode. Oue President receives more than Obama, has more bodyguards and travels further each month that Obama does in a year. And represents far fewer people. All of which cost us a fortune. And this is why the opposition parties are silent most of the time. The DA had to advertise (in the national press) for candidates to contest the election. According to Ryan Coetzee (then CEO of the DA) the incumbents were just not good enough. Too true! I am not holding my breath and awaiting the outcome of this investigation. A quick start is to sell all the posh Government vehicles and downscale to R130 000 tops for ministers and other politicians entitles to free transport. Ministers receive a phone allowance of over R36 000 per annum - why? And another R68 00 for free air tickets! This commission can cut costs by 40% without even raising a sweat - but I will bet they won't. And what will the commission be paid?
13 Weeks ago Janus wrote :
Wasteful spending is not the only problem! We have to deal with fraud, corruption, incompetence, outright theft and inefficiency along with nepotism. In Ekurhuleni a contract worth R1,2 million was awarded to the Mayor's (Duma Nkosi) teenage daughter and Mkhabela Sibeko's teenage son. Neither of whom had a business until immediately prior to the award of the contract. No tender process was implemented. And both have family connections. Sibeko's disciplinary on this issue was squashed and Nkosi is now Chairman of the EDI after being redeployed as EMM Mayor. Nkosi has no qualifications other than being an ANC hotshot. He virtually bankrupted the Ekurhuleni Metro single handed with his ego trips and wasteful spending. How can a former shop steward handle a R12 billion budget??? Will whoever is investigating this waste of taxpayers money take a long hard look at politicians salaries from National to Local level? I think not! Politics has now become big business wirhg Ministers, most without any degree or tertiary education receive (I cannot use the term earn!) bigger saaries than most CEO and MD's who have the education, degrees and experience. When a part-time councillorreceives a salary of R26 000 monthly plus perks one starts to see why our country is sliding into the Zimbabwean mode. Oue Presidentreceives more than Obama, has more bodyguards and tavels further each month that Obama does in a year. Ans represent far fewer people. All of which cost us a fortune. And this is why the opposition parties are silent most of the time. The DA had to advertise (in the national press) for candidates to contest the election. Acording to Ryna Coetzee (then CEO of the DA) the encumbents were just nor good enough. Too true! I am not holding my breath ans awaiting the outcome of this investigation. A quick start is to sell all the posh Government vehicles and downscale to R130 000 tops for ministers and other politicians entitles to free transport. Minsaiters receive a phone allowance of over R36 000 per annum - why? And another R68 00 for free air tickets! This commissionb can cut costs by 40% without even raising a sweat - buyt I will bet they won't. And what will the commission be paid?
13 Weeks ago Anonymous wrote :
This will only assist if these ideas wont accumulate dust in someone's office.South African government has a tendancy of formulating policies or strategies but no one sees to it that implemantation takes place.These formulations are costly on their own,and the next administration will decide otherwise and do like wise,honestly im tired of this government thing i wish there was something i can do,or may be there is (go to Australia)
13 Weeks ago Anonymous wrote :
And what amount is paying to labour brokers? I thought COSATU wanted it banded. Is the parties that costs millions also counted under the "waisting" o fmoney?
HAVE YOUR SAY
Please enter your comment into the text box below.
Note: all comments are moderated (see our moderation policy) and may take some time to display, or may not appear at all.
If you would like to use an alias, please type it below. If you do not enter an alias you comment under a Anonymous byline.
Type your email address below - your comment will not be accepted without it. This is required as part of our moderation guidelines, but your address will not be published or distributed.
Lastly, to help fight spam, enter the letters in the image below as you see them.

     

BUSINESS SERVICES
Awesome UK Lotto's
Business Directory
Car Insurance
Car Insurance for Women
City Guide
Insurance Quote
Life Insurance
Life Insurance for Women
Maps & Direction
Medical Aid
Meetings Africa
Mobile Business Directory
Online Shopping
Personal Loans
Play Huge Lottos
Property Search
Travel Specials

MOBILE SERVICES
 Get Business Headlines & Indicators
 on your phone - dial *120*IOL*5#
 Click here to find out more (SA only)



News


Markets


Technology News


Company News


International