It’s no secret that South Africa is struggling to get back on its feet following the looting and corruption of the Zuma administration.

Midway through this year, our GDP was sitting back where it was during the financial crisis of 2008, unemployment is at five times the global rate, and poverty is at an all-time high, with more than half of South Africans living on less than R1 200 per month.

A major contributor to the problem is a system of patronage within South African politics that’s seen high-level government employees living large while the country starves.

Well, we have some good news. That could all change very soon.

BusinessTech reports that the Department of Public Service and Administration (DPSA) is looking to drastically cut the perks available to members of the executive – including ministers and deputy ministers.

The revisions have come about as part of the new ‘Guide for the Members of the Executive’, which replaced the old ministerial guide book in June this year.

The revisions will be presented to the President before the end of the week.

Before you break out the champers, let’s see what this will entail.

• Reduced staffing in ministerial offices;
• The amount that members of the executive are allowed to spend on vehicles (capped at R700,000);
• All domestic travel will be on economy class tickets;
• There will no longer be payment for subsistence and travel for both domestic and international trips on these levels;
• Reduced costs associated with the occupation of State-owned Residences;
• Reduced security upgrades at private residences;
• Reduced domestic Services at official residence;
• A new cell phone dispensation that will cap the amount claimable from the state;
• Reduced benefits to members upon relinquishing office.

No more ‘firepools’, international shopping trips, BMWs, or business class flights.

All of that sounds incredible, but perhaps the most significant change comes in the form of a pay freeze.

Finance minister Tito Mboweni stated in his October medium-term budget policy statement that the government has to significantly reduce expenditure if we want to stabilise the country’s debt.

The National Treasury also outlined the extent of spending on government wages.

It reveals that 29,000 public servants, plus members of the national executive, Members of Parliament, members of the provincial executive, among others, each earned more than R1 million last year.

After adjusting for inflation, the average government wage has risen by 66% in the last ten years, Mboweni said.

To address this issue, Cabinet, Premiers and MECs’ salaries will be frozen at current levels, and could even be adjusted downwards. Mboweni also called for a reduction in Board and Executive Management compensation and benefits.

It’s about time.

Still, I don’t see this happening without a fair amount of pushback.

[source:businesstech]