GOODS AND SERVICES
David Masondo targets inflated state costs
Inflated rates for goods and services paid by the state have helped drive up public debt and erode service delivery, says deputy finance minister
The government, which is in a dispute with trade unions over its plans to cut its wage bill, is targeting the inflated rates paid for goods and services such as office rentals and car fleet management, as an additional step to squeeze out inefficiencies, says deputy finance minister David Masondo.
The premiums paid by the government on items such as office space — driven by the department of public works & infrastructure’s lack of capacity to negotiate appropriate rates for government tenants, as well as “corrupt class interests” on the part of officials and landlords — have helped drive up public debt and erode service delivery, Masondo wrote in an article on Business Day (https://www.businesslive.co.za/bd/opinion/2021-02-04-david-masondo-government-set-to-trim-its-spending-on-overpriced-office-space/)’s opinion page. ..