Latest news with #DPSA
The South African
25-05-2025
- Business
- The South African
DA slams R400 million salaries of CEOs of failing state-owned entities
The Democratic Alliance (DA) has condemned what it describes as 'exorbitant' executive salaries within South Africa's state-owned enterprises (SOEs), calling for immediate reform and accountability in the wake of shocking new data revealing over R400 million spent annually on executive pay – despite ongoing bailouts, service delivery failures, and poor audit outcomes. According to parliamentary responses and publicly available remuneration data, senior executives at public entities are earning salaries that far exceed national guidelines set by the Department of Public Service and Administration (DPSA), with little regard for performance or fiscal sustainability. 'This reflects a broken system with weak oversight and eroded public accountability,' the DA said in a statement. The DA highlighted several examples: The Development Bank of South Africa (DBSA) CEO earns R15.5 million annually , making them one of the highest-paid public servants in the country. CEO earns , making them one of the highest-paid public servants in the country. Transnet's CEO pockets R8.5 million , even as the entity struggles with port inefficiencies and increasing reliance on the private sector after receiving a R47 billion bailout in 2023. pockets , even as the entity struggles with port inefficiencies and increasing reliance on the private sector after receiving a in 2023. At the Passenger Rail Agency of South Africa (PRASA) , the CEO earns R7.8 million , despite the agency's ongoing infrastructure woes and audit disclaimers. , the CEO earns , despite the agency's ongoing infrastructure woes and audit disclaimers. The Road Accident Fund (RAF) CEO receives R7.1 million, while the fund remains technically insolvent. Other entities named in the report include the CSIR (R6.92 million), SAA (R6 million), Rand Water (R5.4 million), and PetroSA (R5.8 million) – many of which continue to underperform or rely heavily on government support. The DA warned that this level of spending undermines service delivery and public confidence in the government's ability to manage state resources effectively. With only 13 of 40 government departments reporting so far, the total national expenditure on executive pay could be significantly higher than R400 million. 'If such excesses are occurring at senior levels, it is reasonable to infer that similar practices may exist across all employment tiers within SOEs,' the DA said. The party is demanding that the Minister of Public Service and Administration, along with the Minister of Finance, implement the following: A standardised executive remuneration framework for all public entities for all public entities Mandatory justification and public disclosure of any salary exceeding DPSA guidelines of any salary exceeding DPSA guidelines Parliamentary oversight and collaboration to ensure alignment with public service principles They argue that executive pay should reflect performance, especially in entities that have repeatedly failed to deliver on their mandates or required state bailouts. The DA has described the excessive salaries as an 'affront' to millions of ordinary South Africans who continue to endure failing services, from collapsing rail infrastructure to persistent water outages and electricity disruptions. 'The South African public deserves competent and ethical service delivery. These excessive salaries remain not only unjustifiable but an affront to the millions who rely on basic services that are consistently failing.' The DA has vowed to pursue fiscal discipline and performance accountability through legislative channels and continue exposing what it sees as a culture of excess and impunity in state entities. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
19-05-2025
- Politics
- IOL News
Enhancing governance: New initiative to collect data on foreign national public service workers
The Department of Public Service and Administration (DPSA) said it has launched a wide-ranging data collection initiative focused on foreign nationals in a bid to bolster governance and national security. Image: Independent Newspapers Archives The South African government has launched a data collection initiative targeting foreign nationals in public service to enhance governance and national security, addressing public concerns about undocumented workers. The Department of Public Service and Administration (DPSA) said it has launched a wide-ranging data collection initiative focused on foreign nationals in a bid to bolster governance and national security. The initiative, which is already under way, aims to plug information gaps in existing systems and ensure compliance with national employment standards. According to the department, while the PERSAL system captures most employment-related information, it does not provide the full picture when it comes to foreign nationals working in public roles. 'This current request for data is vital, as the PERSAL system, while comprehensive, does not always capture all necessary information for effective policy formulation and public administration,' the DPSA said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The department underscored that this effort is not only about collecting figures but about refining the quality of data. 'Our commitment to data integrity means that we are not only gathering information but also verifying and analysing it to ensure a comprehensive overview once the process is complete.' The DPSA's move comes amid growing public concerns around undocumented or poorly recorded foreign nationals, especially within critical sectors like healthcare. However, the department has poured cold water on claims that '90% of foreign nationals in public health lack documented data.' 'Any claims regarding data deficiencies must be substantiated with credible information,' it stated. 'We are working with departments to ensure that all relevant data is current and correctly captured,' the department said. National security concerns also loom large in the department's reasoning. 'Our existing directive on the Employment of Foreign Nationals outlines strict norms and standards to ensure that such employment does not compromise state security,' the DPSA explained, adding that it works closely with security agencies to 'update our directives in response to evolving national security needs.' While some may see this as a heavy-handed tactic, the DPSA insists that the drive is about strengthening ethical governance. 'We view this initiative as an opportunity to strengthen governance and improve public service practices,' the department said. 'Our approach emphasises accountability and transparency, with the goal of developing a resilient public administration.' With data now being consolidated and analysed, the department said it continues to support individual public service departments to ensure accurate reporting. THE MERCURY
IOL News
07-05-2025
- Business
- IOL News
Public servants' housing allowance increased: new rates effective from last month
The Kanku Road Housing Development in Isipingo. Image: Isipingo ratepayers The Department of Public Service and Administration(DPSA) has officially announced an upward adjustment to the housing allowance for public servants. According to Circular No. 15 of 2025, the revised allowance, implemented per the Public Service Coordinating Bargaining Council (PSCBC) Resolution 1 of 2025, took effect at the beginning of last month. Effective from that date, the monthly housing allowance for qualifying public servants will increase from R1 784.55 to R1 900.00. The housing allowance, as contained in the Public Service Coordinating Bargaining Council (PSCBC) Resolution 7 of 2015 (clause 4.6), provides that the amount of the housing allowance shall be adjusted annually based on the average Consumer Price Index (CPI) for the preceding financial year. The policy on housing allowance also outlines specific conditions for employees who do not own a home, which include that tenants with legal rental agreements appointed before May 27, 2015, will continue to receive a direct R900 monthly allowance. The remaining R1000 will be saved in the Government Employees Housing Scheme's (GEHS) Individual-Linked Savings Facility (ILSF), which is managed by the National Treasury. For employees appointed on or after May 27, 2015, will have the full R1 900 housing allowance diverted into the ILSF, promoting savings towards future homeownership. Earlier this year, Moses Moshi, the spokesperson for the DPSA, told this publication that every month, an average of R164 million of ILSF savings (Housing Allowance benefit) is processed, albeit not exclusively for homeownership. He said this included employees who withdraw because of retirement, being medically boarded, end of contract, death or reversals. Before 2015, when the ILSF was not yet in existence, the housing allowance benefit was being paid directly to employees irrespective of whether they are homeowners or tenants. From March 2016 to the end of January this year, when employees who are not homeowners had their housing allowance benefit saved in the ILSF, the cumulative savings amounted to over R28 billion as at the end of January this year. From 2015 to the end of January this year 555 892 housing allowance withdrawals were processed through the ILSF to the value of R11 billion. The secular said that PERSAL has been directed to effect the adjustments on the system to ensure seamless implementation, while national and provincial departments are expected to fund these increases from their existing budget allocations. The Government Employees Housing Scheme (GEHS), along with the annual subsidy adjustments, reflects the government's ongoing commitment to improving the living conditions of public servants and to encouraging responsible homeownership through structured savings mechanisms. According to Moshi, before 2015, public servants received the housing allowance as part of the condition of service benefit for years. However, he said this allowance was not being used by several employees to acquire homes. Hence, in 2015, the government (as the employer) and labour signed the Public Service Coordinating Bargaining Council (PSCBC) Resolution 7 of 2015, to establish a (GEHS). According to the department, the challenges concerning the housing allowance benefit, which impact on homeownership by government employees, was that the majority of employees who receive the housing allowance benefit are those at levels 1 – 7 (as at 31 December 2024 equalling to 638 836) and mostly did not qualify for mortgage bonds at commercial banks and also, do not qualify for social housing programmes of government. 'The current finance products are too expensive for most government employees who fall within the gap market. As such, a market product needs to be developed for this segment of employees so that they can also become homeowners. "This would require collaboration between government, government entities, development finance institutions and the commercial housing finance sector to develop such products that would accommodate these employees market.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading
