KZN’s government of national unity embarks on fat-trimming exercise

The KwaZulu-Natal government of provincial unity this week embarked on a number of exercises to trim the fat of government expenditure as part of cost-cutting measures.

Just more than a week after newly elected Premier Thami Ntuli announced his cabinet, the department of economic development, tourism and environmental affairs created four new entities , merging bodies that were previously separate..

MEC Musa Zondi announced the formation of:

• The KZN Economic Regulatory Authority — a merger between the KZN Liquor Authority and the KZN Gaming and Betting Board — to regulate and empower the gambling and liquor industries in the province. Mbali Myeni and Portia Baloyi have been appointed chairperson and interim CEO, respectively;
• The KZN Tourism and Film Authority — previously the KZN Tourism and KZN Film Commission -  with Thandi Nzama as chairperson and Sibusiso Gumbi as interim CEO — to market and promote the tourism and audiovisual industries as well as addressing historical imbalances in infrastructure, skills and resource distribution;
• The KZN Growth Fund Agency under the leadership of Cassius Lubisi and interim CEO Tshidi Ikaneng;
• And the Moses Kotane Research Institute , which will be chaired by Thinta Cibane and led by Thembelihle Mapipa.

“These appointments mark a significant step in the establishment and operationalisation of these entities, aimed at fostering economic growth, regulatory oversight, research advancement and tourism development within KwaZulu-Natal,” said Zondi.

“Each appointee brings a wealth of expertise and leadership, positioning these entities for success in their respective fields. We look forward to their strategic guidance and contributions as we embark on this journey of growth and prosperity,” said MEC Zondi.

Zondi said these initiatives are part of a rationalisation process which seeks to “streamline operations, enhance service delivery, eliminate duplications and create efficiencies in the department”.

The attempt to streamline efficiencies and funds comes after new finance MEC Francois Rodgers said on Monday he would shut down the department’s Durban offices that they were leasing on the ninth floor of The Marine Building.

Rodgers said this would save the provincial treasury an estimated R1m a year, which would be redirected to other service delivery needs in the department.

“During my consultation with my executive team in the department, I directed that business cannot continue as usual and we need to streamline operations. In this regard, I have decided to close the Durban office, which served as a secondary office with an annual lease amount of R1,115,786.40, translating to a total value of just more than R5,578,000 over five years that we will save,” Rodgers said. 

He said his team would operate from the Pietermaritzburg office as they were looking to stabilise spending, eliminate irregular expenditure and ensure accountability and transparency.

“My wish is to enhance the transparency of our decision-making in resource allocation and utilisation, and I am prepared to make tough decisions if we are to demonstrate that we mean business when we say we will stabilise the finances in the province with prudent fiscal management. As KZN Treasury, we must lead by example.”