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Ministers demand 18 new cars from govt

22/02/2009 00:00:00 MAKHOSI MAGONGO and MFANUKHON

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MBABANE— Cabinet has proposed a procurement of executive vehicles for ministers to use on official government business.

Sources told this publication that Cabinet has requested the Minister of Finance, Majozi Sithole to look into the possibility of purchasing a total of 18 vehicles, to be part of the central government’s pool of cars.

Currently, ministers are entitled to an interest free car advances. The vehicles purchased should, however, befit the status of the office.

In addition, ministers want their housing allowance increased. Currently, a housing allowance of 25 percent of the minister’s basic salary per month is payable to ministers who occupy their own houses and are not in a rent-free government quarter. The proposed increment figure, if suggested, could not be ascertained.

According to sources, it is envisaged that the cost implications of the proposed changes will be met from the allocations to be announced by the Minister of Finance Majozi Sithole in Parliament this week.

The proposal was made in a Tuesday cabinet meeting. Accordingly, a special sub-committee was appointed to investigate its feasibility, against a backdrop of a poorly performing economy and other social ills.

"The feeling is that the cars that have been bought by ministers are personal. They are purchased using a repayable government loan. Therefore, there is a need for vehicles to be used for daily ministerial duties," said a source close to the discussions. The rationale behind the increase in other allowances could not be established.

Sources said Sithole was against the proposal on the basis that government was not financially stable.

Government Spokesperson Macanjana Motsa said she was unaware of the proposal.

"Please allow me to do my research and I will get back to you next week," she said.

However, Sithole confirmed the proposal.

He said government had not yet taken a final position on the issue of duty vehicles for cabinet ministers.

Sithole said a committee was set up to look into the matter.

However, the finance minister wondered how and where this newspaper got the information that his colleagues felt Government should buy them vehicles that they would use on their official errands.

He said it was not true that he had rejected the idea to buy them the cars on grounds that there was no money.

"What I can tell you is simple and straightforward; we are working on the matter you are talking about. We have not reached any conclusion. It’s unfortunate when your sources; the people you don’t want to reveal to me, tell your newspaper that I have rejected the idea to buy these cars," he explained.

"All I know is that there’s a committee that’s looking into this issue with keen eyes; it’s unfortunate also that you will quote me yet your sources remain anonymous even when they say I have rejected the idea as if I do things unilaterally," added the finance minister in an interview.

It can be revealed that the ministry of finance—not Sithole in his personal capacity is opposed to the cabinet resolution to buy the cars because benefits (receipts) derived from the Southern African Customs Union (SACU) have decreased. Also, the recession in the global economy has also influenced the decision by the economists at finance to object to the resolution.

In accordance with a KPMG report of 2000, an automatic annual increment equivalent to consumer price index is awarded each year, in the 1st of April.

According to Circular No 1 of 2002, read with Circular No 2 of 2002, other allowances for ministers include entertainment allowance; household allowances; commuted and re-imbursive car allowance; tax re-imbursive allowance, rent and furnishings, security, paid-for electricity, telephone and water charges; as well as funeral and retirement benefits.