Sexwale’s cost-cutting drive saves R120-million

[newsroom]

Cape Town- The Department of Human Settlements has managed to save close to R120-million since Cabinet’s call for government departments to contain their operational costs.

Human Settlements Minister Tokyo Sexwale told Parliament in his Budget Vote speech on Wednesday that cost-cutting was a key part of his drive to ensure the best possible returns on allocations from the fiscus.

Sexwale introduced several cost-cutting measures soon after his appointment, including a ban on business class flights. Sexwale himself continues to fly economy class, and uses his own cars on government business.

“Preliminary expenditure outcomes (for the 2009/2010 financial year) indicate that Human Settlements has realised savings of R53.2 million from operational expenditure, R31 million from personnel expenditure and R34 million from transfers to human settlements institutions,” Sexwale told Parliament.

The operational expenditure savings include R20.6-million on travel and subsistence, R24,4-million due to cuts in the Department’s advertising budget, R3.3-million savings in administrative fees and R4.9-million in operating payments.

“We have also looked at not unnecessarily filling vacant posts – yet without undermining service delivery,” Sexwale said. “These posts will remain vacant until proper realignment has been done in line with our new human settlements mandate.”