The Carpe Per Diem Economy

Senior government officials seem to be embracing the Latin phrase carpe diem – “seize the day” – in the most self-serving way possible.

How else can one interpret the government’s decision to announce a double or triple increase in civil servants’ per diems (Latin for “by the day”) – a week before president-elect Netumbo Nandi-Ndaitwah takes office?

Executive director in the prime minister’s office, Ben Nashandi, announced this week that the adjustment in subsistence and travel (S&T) allowances has not yet been finalised but is part of the government’s broader efforts to improve employee welfare and performance in the public sector.

To be clear, the government’s policy on S&Ts is, on paper, both reasonable and justifiable. However, in practice, it has been widely abused. Rather than serving its intended purpose, the system has become a cash cow for officials.

It is an open secret that some officials hunt for trips to claim travel allowances, turning a necessary expense into another avenue for personal enrichment. In 2017, former president Hage Geingob expressed concern over S&T allowances becoming a cash cow for civil servants. He said he had received reports of officials fighting over trips, highlighting the extent to which the culture of per diem abuse had taken root.

One would expect the government to close possible loopholes to stop the rot. Instead, the government has proposed increasing rates. Under the revised system, senior government officials stand to benefit the most, with the secretary to Cabinet’s allowance surging from N$800 to N$2 500 per day. Executive directors will see their daily rate increase to N$2 300 when travelling to the regions.

At a time when Namibia faces severe economic challenges, such extravagant increases raise serious questions about the government’s priorities.

The timing could not have been worse – Namibians are struggling to make ends meet. The latest census data reveals that around 25% of Namibians earning an income spend only N$521 a month, while 90% cannot afford more than N$5 000. Additionally, a United Nations report indicates that approximately 1.2 million people are facing hunger.

Yet, top government officials remain blind to this harsh reality, choosing instead to add more food to their own plates.

One of the key justifications for the increase is that travel allowances have remained unchanged since 2008. We could not agree more with public policy analyst Marius Kudumo, who says the increase reinforces the perception that the government is insensitive to the needs of the unemployed and society in general.

“It must also be considered against the backdrop of high unemployment, growing social and economic inequalities and deteriorating public services,” he says.

For this financial year, the government has budgeted about N$506 million for S&Ts. Unfortunately, Namibian presidents have also led the way in exploiting this policy, turning it into a free-for-all gravy train. For instance, president Nangolo Mbumba travelled to 14 countries in 11 months last year, qualifying for around N$1.9 million in travel allowances. Geingob was also known for his frequent travels, which earned him millions in travel allowances.

A decade ago, the African Development Bank (AfDB) released a report titled ‘Uses and Abuses of Per-Diems in Africa: A Political Economy of Travel Allowances’, warning of a growing trend in African countries where public funds were being allocated to per diems.

These allowances, originally intended to facilitate travel for civil servants, had instead become a tool for incentivising attendance at long-distance meetings and workshops – often at the expense of meaningful public service delivery. The report underscored the dangers of this system, particularly its impact on governance and public finance.

At a time when the efficiency of government spending is under increasing scrutiny, the AfDB argued that reforming per diem policies could significantly improve financial management and help redirect resources towards development priorities. The report also found that as per diem rates rise, intrinsic motivation among civil servants declines, while those driven by financial gain become more prevalent.

“Paying high per diem rates will decrease the probability of altruistic individuals attending meetings, while ‘unwanted’ selfish individuals will likely fill the room just for the sake of earning money,” the report stated. To curb this abuse, the AfDB recommended that governments overhaul their travel allowance systems, ensuring that per diems no longer serve as unofficial salary supplements or motivation tools.

Reducing per diem rates, the report noted, would not only ease pressure on public finances but would also have little impact on the quality of participation in government workshops and meetings.

A decade later, Namibia continues using an old system prone to abuse. Instead of tackling the misuse of per diems, successive administrations have entrenched a culture where travel allowances are treated as entitlements rather than a necessary expense.

The incoming president would be wise to halt the proposed increases and reform the system to prevent the abuse of travel allowances for personal profit.