Gravy train refurbished Furniture allowances for politicians

NAMIBIA’S politicians awarded themselves hefty home furniture allowances last year, a secret Cabinet document leaked to The Namibian this week, reveals.

The decision was taken in July last year despite clear indications that Government revenue, particularly from one of its main sources – the mining sector, would decline significantly due to the strengthening of the N$ against the US$. The document titled: Cabinet Action Letter – Decision number: 19th/22.07.03/001 classified as “‘secret” indicates that Cabinet approved increased furniture and entertainment allowances to additionally cover National Assembly back-benchers as well as members of the National Council and Regional Councils.The allowances were implemented during the 2003/2004 financial year.A N$4,5 million saving on the personnel budget of the Ministry of Regional and Local Government and Housing was channelled towards covering the costs of the improvement of conditions of service for regional councillors.Furniture allowances for leaders of opposition parties, chief whips and their deputies (both ruling and opposition), chairpersons of committees and ordinary members of both the NA and NC is N$625 per month.While for members of the Regional Councils and their management committees the amount was fixed at N$521 per month.All the allowances are taxable but non-pensionable, and the furniture will remain the property of the politicians at the end of their terms of office.”No receipts [for items bought] need to be submitted,” the Cabinet document states.Cabinet cited the purpose of the Furniture Allowance as being “to enable the above office bearers to purchase the necessary furniture required for hosting functions in line with their obligations.”The document further indicates that Government spent huge amounts of money on furniture for the houses of: * Prime Minister – N$100 000 per term * Deputy Prime Minister – N$87 500 per term * Speaker: National Assembly – N$75 000 per term * Chairperson: National Council – N$75 000 per term * Ministers – N$62 500 per term * Special Advisor: National Security – N$62 500 per term * Director General: National Planning Commission – N$62 500 per term * Auditor General – N$56 250 per term * Deputy Ministers – N$50 000 per term * Deputy Speaker: National Assembly – N$50 000 per term * Vice Chairperson: National Council – N$50 000 per term * Regional Governors – N$50 000 per termCabinet’s secret decision to hand hefty allowances to politicians is sure to raise some eyebrows in view of Finance Minister Saara Kuugogelwa-Amadhila’s warning, during her budget speech in March, that Namibia faced a difficult time due to dwindling financial resources.”There are hard choices to be made.The next financial year (2004/2005) will be a challenge because finances are tight, but it is also an opportunity for us to learn to manage our scarce resources more effectively and efficiently,” the Minister cautioned in March.Government’s dwindling revenue has forced it to cut budget provisions for the next three financial years as part of austerity measures aimed at reigning public expenditure.The Office of the Prime Minister has, among others, recently instructed all Government ministries that:* All vacancies in the public service are frozen from the 1st April 2004 until further notice.* Accounting Officers must curb all overtime to allow only for the “very essential and unavoidable” overtime to be performed.* Subsistence and travel expenditure should be decreased by more than 50 per cent relative to the last financial year.Comment could not be obtained from the Office of the Prime Minister yesterday as Secretary to Cabinet Frans Kapofi is out of the country, while his deputy Steve Katjiuanjo was said to be in meetings the whole day.Deputy Director of Communication, Caroline Sitongo, is on study leave.The document titled: Cabinet Action Letter – Decision number: 19th/22.07.03/001 classified as “‘secret” indicates that Cabinet approved increased furniture and entertainment allowances to additionally cover National Assembly back-benchers as well as members of the National Council and Regional Councils.The allowances were implemented during the 2003/2004 financial year.A N$4,5 million saving on the personnel budget of the Ministry of Regional and Local Government and Housing was channelled towards covering the costs of the improvement of conditions of service for regional councillors.Furniture allowances for leaders of opposition parties, chief whips and their deputies (both ruling and opposition), chairpersons of committees and ordinary members of both the NA and NC is N$625 per month.While for members of the Regional Councils and their management committees the amount was fixed at N$521 per month.All the allowances are taxable but non-pensionable, and the furniture will remain the property of the politicians at the end of their terms of office.”No receipts [for items bought] need to be submitted,” the Cabinet document states.Cabinet cited the purpose of the Furniture Allowance as being “to enable the above office bearers to purchase the necessary furniture required for hosting functions in line with their obligations.”The document further indicates that Government spent huge amounts of money on furniture for the houses of: * Prime Minister – N$100 000 per term * Deputy Prime Minister – N$87 500 per term * Speaker: National Assembly – N$75 000 per term * Chairperson: National Council – N$75 000 per term * Ministers – N$62 500 per term * Special Advisor: National Security – N$62 500 per term * Director General: National Planning Commission – N$62 500 per term * Auditor General – N$56 250 per term * Deputy Ministers – N$50 000 per term * Deputy Speaker: National Assembly – N$50 000 per term * Vice Chairperson: National Council – N$50 000 per term * Regional Governors – N$50 000 per termCabinet’s secret decision to hand hefty allowances to politicians is sure to raise some eyebrows in view of Finance Minister Saara Kuugogelwa-Amadhila’s warning, during her budget speech in March, that Namibia faced a difficult time due to dwindling financial resources.”There are hard choices to be made.The next financial year (2004/2005) will be a challenge because finances are tight, but it is also an opportunity for us to learn to manage our scarce resources more effectively and efficiently,” the Minister cautioned in March.Government’s dwindling revenue has forced it to cut budget provisions for the next three financial years as part of austerity measures aimed at reigning public expenditure.The Office of the Prime Minister has, among others, recently instructed all Government ministries that:* All vacancies in the public service are frozen from the 1st April 2004 until further notice.* Accounting Officers must curb all overtime to allow only for the “very essential and unavoidable” overtime to be performed.* Subsistence and travel expenditure should be decreased by more than 50 per cent relative to the last financial year.Comment could not be obtained from the Office of the Prime Minister yesterday as Secretary to Cabinet Frans Kapofi is out of the country, while his deputy Steve Katjiuanjo was said to be in meetings the whole day.Deputy Director of Communication, Caroline Sitongo, is on study leave.