DoD to impliment cost-cutting measures


Defence minister Lindiwe Sisulu says her department has identified a number of cost cutting measures that will be implemented to reduce wasteful expenditure and to ensure that resources are diverted to essential services and key priority programmes.

She has told Democratic Alliance MP Ian Ollis Cabinet has appointed a Ministerial Task Team to develop proposals on how the whole of government should respond to the 2009 recession by, among other things, identifying areas in which expenditure could be reprioritised “with a view to diverting resources to the provision of essential services and crucial govt programmes”.

She says the Task Team, which is led by the Minister of Finance, Pravin Gordhan, will make specific recommendations on how government should implement cost management measures in all the three spheres of government in a structured and coordinated manner. These recommendations will cover short and medium measures.
“All government departments will be required to comply with these measures once they are approved by Cabinet. Examples of measures under consideration include the cutting down on international travel, reducing over-reliance on consultants; reviewing the prices that the state pays for goods and services, centralising certain procurement procedures, reviewing discretion projects and rescheduling time frames for some projects,” Sisulu said in a written answer to a question posed by Ollis on austerity measures taken at the DoD to cope with the recession and its consequent state funding shortfall.
“I will be in a better position to respond more comprehensively to the questions as soon as the Ministerial Task Team’s report has been finalised and approved by Cabinet.”