. . . as fuel usage is capped
Staff Writer
Members of the executive and public office bearers will not be receiving new cars for the next five years and their monthly fuel consumption will now be capped, on the orders of President Hage Geingob, the Presidency announced on Thursday.
The decision according to the Presidency is expected to save government over N$200 million.
“As part of deepening Effective Governance, the Government reform agenda and reducing expenditure, President Geingob has directed that the vehicle fleet of the Namibian Government will not be renewed for the period 2020-2025. No new vehicles will be purchased for members of the Executive and Public Office Bearers in the Namibian Government,” the Presidency said.
“This decision by President Geingob, expressly during this difficult period of COVID-19, will translate into an approximate saving of N$200 million. President Geingob has also directed a cap on monthly fuel consumption by Public Office Bearers. The decision by President Geingob not to renew the Government fleet, saving N$200 million is a crucial segment in redirecting public resources to urgent priorities, specifically at a time when the country is dealing with the health and economic implications of COVID-19.”
The Presidency said the decision comes amid declining Government revenue as a result of the unprecedented global economic downturn, falling commodity prices and exchange rate fluctuations.
“After becoming President of the Republic of Namibia in 2015, President Geingob undertook a major Government reform agenda in order to deal with declining Government revenue as a consequence of an unprecedented global economic downturn, falling commodity prices and exchange rate fluctuations. Recurrent droughts over the past five years, of which the last was in 2019, have also affected the fiscal position of Government. In 2019 alone, an amount of N$557 million was redirected to drought relief, reaching 622,444 Namibians in all 14 regions.”
The move comes on the back on previously announced cuts, such as annual travel and subsistence allowances, which the Presidency says have allowed government to direct more resources to social sectors such as housing and health among others.
“By constantly directing Government Offices, Ministries and Agencies to do more with less, major savings across the Government system have been achieved over the past five years under President Geingob. Government spending has been reduced by 9 percent; annual travel and subsistence allowances have been cut by 62 percent. Moreover, President Geingob has ensured greater transparency in Government procurement by most notably cancelling the inflated Hosea Kutako International Airport tender.”
“ As a consequence, scarce Government resources (41 percent of the national budget) have been directed to social sectors, including health, housing, and increments for the old age pension grant by over 100 percent, and the rollout of countrywide Food Banks (reaching over 42 000 Namibians). This bouquet of decisions has had the desired effect in the fight against poverty, with Namibia receiving praise from international organizations, including OXFAM and the World Bank.”
The cost saving announced by the Presidency also comes on the back of the terminating of the positions of special advisors for the 14 Regional Governors.
“Since 21 March 2020, President Geingob has continued with major Government reforms for Effective Governance, reducing significantly the size of Cabinet and terminating the positions of special advisors to 14 Regional Governors. The savings from these ongoing reforms amount to millions of Namibian Dollars.”
