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Eastern Cape adjustment budget criticized for poor governance and bigger wage bill

Nov 23, 2018
Eastern Cape adjustment budget criticized for poor governance and bigger wage bill

The 'Hill of Hope' that Eastern Cape MEC for Finance, Oscar Mabuyane, referred to in his adjustments budget, tabled in the Eastern Cape legislature on Thursday afternoon, "is just an illusion. It is in fact the slippery slope of poor governance", the Democratic Alliance (DA) said.

"This is well illustrated by the R3,014 billion in equitable share that we will lose in 2021/2022 financial year due to the number of people who are leaving the province.

"Bad governance does not create the right environment for economic growth, it chases investors away," described Bobby Stevenson (MPL), DA Eastern Cape Shadow MEC of Finance.

"When it comes to belt tightening, the provincial government’s belt is still too loose. In the last financial year this province spent at least R1,4 billion on non-core business, including catering (R101,5 million), Consultants (R541,3) and Transport and Accommodation (R792 million)."

'Oscar Mabuyane adjustament budget should have announced bugger cuts'

Stevenson said that one would have expected MEC Mabuyane, to announce bigger cuts than the R45 million he mentioned.

"Over the next three years, the provincial government will have to find an extra R3,016 billion to fund the increase in the wage bill, which will have to be redirected away from other service delivery programmes," he added.

"This further compounds the crisis in which the Eastern Cape finds itself, due to the wage bill absorbing 65% of the budget."

He said that the DA does, however, welcome the additional R108 million in Education, for the refurbishment of school hostels, and the R300 million for the Health department to be able to pay their suppliers.

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