(Budget vote debate in Parliament: National Treasury)
In difficult financial times, sound fiscal principles are of the utmost importance and National Treasury is supposed to be the bastion of fiscal responsibility and management. This institution, however, does not always adhere to legislation and regulations and, thus, sets a poor example for other government institutions.
According to the Auditor-General (AG), National Treasury is not acting with the necessary urgency to address identified risks and improve internal control. That is one of the reasons provided for the institution's unauthorised expenditure that amounted to more than R249 million in the previous financial year.
A loss of R267 million due to fruitless and wasteful expenditure was also recorded because of the needless delay in implementing the integrated financial management system.
The Public Procurement Bill must be finalised. Passing the law has dragged on for years. It must stipulate that all tenders and contracts must be published to promote transparency on all levels of government.
Good financial management would have prevented the current financial crisis. Policy certainty would have averted the economic recession. Failed policy directions must be abandoned.
The failing public enterprises on which tax money is wasted must be privatised. Abandon the concept of a government bank before valuable time and money is wasted on an ideological obsession that will not benefit the country in any way.
National Treasury's most important task at hand is to limit debt to keep the country from falling over the edge of fiscal ruin.
This is, however, a near-impossible task as a result of failed ANC policy as well as factors like incompetent officials, money squandering, the government's inability to cut back on its wage bill and ongoing tender corruption.
Economic growth is the only thing that can keep the sinking South African ship from going under. Throw the impractical ideologies overboard. Work together to create an environment conducive to growth, one in which the private sector can invest and create jobs so as to ensure a prosperous future for all.
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