DA suggests R1bn in provincial cuts to help fight virus

DA MPL Retief Odendaal has proposed that urgent amendments be made to the provincial budget so funds can be used in the fight against Covid-19.

Odendaal, in a statement, said the suggested budget amendments would free up R1bn in funds, which could be given to the department of health.

“The final figures for the 2019/2020 financial year, which ended last week, have not been tallied yet, but the department [of health]  is facing accruals of close to R2.9bn which highlights the unfortunate inability of the administration to deal with the ever-increasing accruals which have seen creditors experiencing huge delays in receiving payment for goods and services rendered.

“Considering the financial commitments of the department for the financial year at hand, as well as the contingent liabilities insofar as medico-legal claims are concerned, the department of health is factually insolvent,” he said.

Odendaal said the situation was likely to worsen given that the department had no choice but to proceed with the unplanned, emergency procurement of goods and services to fight the pandemic.

Odendaal suggested the following departmental budget cuts:

• R350m from travel and subsistence (47,5% of total budget);
• R50m from departmental catering (43,1% of total budget);
• R350m from cost of employment (0.6% of total budget);
• R25m from cost of advertising (40% of total budget);
• R25m from training and development (9,2% of budget);
• R25m from office stationery (15,2% of budget); and
• R100m from cost of communication (31,7% of budget).

Odendaal said these savings, totalling R1bn, were mainly from noncore service delivery budget line items that would not have a direct effect on service delivery in the province.

He added he had written to finance MEC Mlungisi Mvoko and to the chair of the  finance and provincial treasury committee, Vumile Lwana, requesting an urgent committee meeting to discuss the proposed budget adjustments.

Mvoko said he had received the proposal but had not yet discussed it internally with the treasury.

Regarding a possible meeting, he said Odendaal should also write to the legislature, through which such decisions were often taken.