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Government

Life in the fast lane at taxpayers’ expense

19 Dec.

Millions spent on luxury flights despite pleas from Finance Minister Pravin Gordhan for belt-tightening.

Finance Minister Pravin Gordhan’s pleas for austerity in government spending have fallen on deaf ears among his Cabinet colleagues and some public institutions.

A flood of ministerial replies to written parliamentary questions last week shows many millions have been spent on luxury travel and accommodation when even slightly more modest choices would have saved the taxpayer a fortune. The replies triggered complaints from opposition parties that the spending was profligate and in contempt of the poor of the country.

First up for criticism was International Relations and Cooperation Minister Maite Nkoana-Mashabane, who disclosed that she had spent more than R10m on 14 chartered international flights between April 1 last year and June 30 this year. Since she was appointed in May 2009, she has taken 38 overseas trips, costing more than R21m in flights for her, her support staff and senior officials.

Democratic Alliance (DA) spokesman on international relations Kenneth Mubu says each flight cost an average of almost R750000.

“We calculate that had the minister used commercial airlines, like ministers should do, she would have saved the South African people R9,6m. This is the same minister who, in September this year, chartered a flight from Oslo apparently to avoid having her luggage scanned, as required by international law.

“But now a different picture is emerging. The chartered flight from Oslo was not a once-off. Expensive chartered flights are clearly her preferred mode of travel. No doubt the cost of these flights to the South African people is the furthest thing from her mind as she kicks back on a luxury jet. Now she owes us all an explanation.”

News24 reported ministerial spokesman Clayson Monyela as saying: “In most countries, foreign affairs ministers have their own planes — like the president and deputy president — because of the nature of their work.

“They crisscross the globe to visit counterparts and sign bilateral agreements, but when they don’t have a dedicated plane, like in this instance, it becomes difficult.”

He reportedly added that the chartered flights were for visits to Africa where direct connections were difficult and had the minister not used chartered flights she would have had to fly to Europe first, adding days to travel time.

DA defence spokesman David Maynier also complained about the use by Armscor’s board members of luxury accommodation when visiting defence shows abroad.

Documents show that the Armscor delegation also used luxury limousines for their transport and often kept them waiting, at huge extra cost.

Mr Maynier says members of Armscor’s board attended the DSEI defence exhibition in the UK in September and the delegation included chairman Moreti “Mojo” Motau, acting CEO Sipho Mkwanazi, together with a number of nonexecutive directors.

“While on the trip no expense seems to have been spared by Armscor including business class flights, luxury hotels and the use of a limousine service in the UK.

“Was it really necessary for the delegation to book rooms in luxury hotels on the same night they were flying to the UK so as not to have to wait to check in? Why were rooms booked and paid for at luxury hotels for six days when some members stayed for less than six days? Why was it necessary to use a luxury limousine service to transport members of the delegation?

“The fact is that Armscor is a struggling state entity which received a bail-out of R594,8m from public funds in the 2010-11 financial year. Mr Mkwanazi himself claims in the 2010-11 annual report that the entity is under ‘considerable financial pressure’, and yet the Armscor board seem to think there is nothing wrong with zooming around the world behaving like Fortune 500 fat cats. This is simply wrong,” Mr Maynier says.

Armscor spokeswoman Daphney Chuma reportedly said: “Armscor has to do marketing in order to support the South African defence industry. The (marketing) leads to job creation and helps to develop the defence sector.”

Independent Democrats MP Haniff Hoosen, responding to replies received by his party, complained that Home Affairs Minister Nkosazana Dlamini-Zumahad revealed that in the past financial year her department had spent in excess of R268m on travel and accommodation, of which almost R111m was paid to Wings Naledi; R52m to Duma Travel; R94m to Magic Travel, and R10m to Connex Travel.

“Ms Dlamini-Zuma further replied that R53m was spent on travel and accommodation in the current financial year, with R36m paid to Duma Travel and the balance of almost R17m paid to XL Nexus Travel,” Mr Hoosen said.

Mr Hoosen said the ID would submit follow-up questions to the ministries.

Source: Business Day

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About Coastal Roy

A consultant experienced in the financial sector in Africa and with a background of central banking, the financial system and information technology. Area of expertise: - Financial market development and regulation. - Payment, clearing and settlement systems modernisation and regulation. - Strategy and policy development for central banks and the financial sector. - Capacity building, advising and mentoring in financial sector development. Educational qualifications: - Master of Business Leadership, degree; UNISA - BSc (Hons) degree in Physics, Manchester University

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