Cost-cutting measures aimed at stopping abuse, says Zuma

Pretoria – President Jacob Zuma says Cabinet decided to implement several cost cutting measures to provide value for money, minimise costs, stop abuse and more importantly ensure that government spending is effectively managed.

Responding to a question in the National Assembly on Wednesday, on whether any executive member of Government had issued instructions to all state-issued card holders to exercise discipline and restraint in using such cards to cover expenses, Zuma said Finance Minister Pravin Gordhan in the Medium Term Budget Statement had announced that no new credit cards would be issued and existing ones would be cancelled immediately.

“Credit cards are to be withdrawn from all political office bearers and officials within government. Ministers have already been informed formally of this decision and other spheres of government are being formally notified as well.

“The question of tracking expenditure and scrutinising quantums will no longer arise as the cards are being withdrawn completely,” he said.

The Amendments to the Treasury Regulation on the issue of the credit cards were published for public comment today.

The President said in instances where there has been credit card abuse in the past, the transgressors will be dealt with according to the appropriate regulations and structures.

“The Executive and Parliamentary Ethics Codes, Public Service Act, the Public Finance Management Act and Treasury regulations outline various processes to be followed in such cases.”

Other measures announced by the Finance Minister include standardising the cost limits for official cars, stopping compensation for use of personal cars, limiting ministers to travel business class instead of first class, limiting business class travel for government officials, better contract management and developing guidelines to limit non-essential costs in advertising.

Zuma explained that these measures built on earlier measures and on the progress made in the past four years in cutting expenditure and redirecting budgets to our core business which is service delivery.

“We will continue to do everything possible to ensure that money goes to the provision of services.”