Eastern Cape continues march towards fiscal cliff: DA

NOVEMBER 19, 2015

The Eastern Cape's march towards a fiscal cliff continues without the MEC for Finance and Provincial Expenditure spelling out clear plans on how to deal with the escalating wage bill, Democratic Alliance's (DA) Eastern Cape Shadow MEC for Finance, Bobby Stevenson, has claimed.

"MEC Sakhumzi Somyo correctly identified the provincial wage bill of 65% of the total budget as a key problem that needs to be dealt with.

"Another investigation into this matter is simply not good enough. This has been promised for years by Premiers and previous MECs for finance," said Stevenson.

"What is required is tough leadership. Until we get to grips with our bloated bureaucracy the resources for actual service delivery will be under constant decline. I have warned about this problem for years: last year the percentage for the civil servant wage bill was 64% of the total budget."

He said that in the current adjustment of R1. 446 billion, R555 million is to supplement the wage bill.

"We welcome the additional R200 million for electrification projects in municipalities as well as the R100 million for the human settlements development grant for Nelson Mandela Bay for housing and the R18.330 million for NSFAS-funds.

"It is unusual for an adjustment bill to be tabled based on funding that will come from the national parliament, before parliament has actually approved the Division of Revenue Amendment Bill (DORA) that will officially allocate those funds. It would be unlawful to pass this Bill prior to the DORA being approved in the national assembly. I did raise the matter by point of order in the sitting of today," Stevenson said.

"The citizens of the Eastern Cape are looking for hope, fresh opportunity and the belief that things will change for the better. Unless bold leadership is exercised the province will continue on its current path."