The controversial request by DG Jimmy Manyi, for an additional R1 billion for the Department of Labour (DOL), included approximately R350 million that was allocated to IT systems and related IT spend.
In his breakdown of the R1 billion - which Manyi asked for in addition to the department's proposed budget of R1.8 billion - R17 million was allocated for the acquisition and implementation of an electronic document management system and R6 million for IT equipment.
He stated that R192 326 million would go towards additional human resources, which are meant to capacitate, among other things, ICT communications and risk management.
Also, R135 million was to be allocated to public employment services to upgrade the current IT systems, which Manyi has deemed as inadequate to host a “virtual labour market”, which the department hopes to roll out.
However, the request for additional funding has been slammed, with Democratic Alliance deputy shadow minister of labour Ian Ollis describing it as “ridiculous”. Even labour minister Membathisi Mdladlana lashed out at Manyi, saying the situation is “an embarrassment”.
No detail
With the annual increase, the DOL has been given a proposed budget of R1.8 billion. “Manyi, however, suddenly told the portfolio committee recently that he needed an extra billion rand to run this department. He could not, at that point, give proper details for this supposed billion. Why not? Because his staff had never requested these large sums from treasury,” said Ollis in his speech in reply to the department's budget.
Ollis says that, according to an e-mail between Manyi and his staff members, staffers were asked to come up with things to put in the budget, after the request for the additional funds was made.
“I think he just picked a figure out of the air and tried to make the breakdown figures fit that. But he couldn't. The figures add up to R900 million. He couldn't come up with a good justification for the full R1 billion. I find it highly irregular.”
Ollis adds that Manyi also flew in people from all over the country, using DOL funds, for an end of year party, last year. “You can't have parties and then ask the taxpayers for more money.”
At a recent portfolio committee meeting, Manyi provided details on the breakdown of the additional R1 billion and where it would be used. “It [the breakdown] says he needs a new computer system for R135 million. Why?” asks Ollis.
'Ridiculous' deal
He says this additional funding for IT needs in the department is not justified. “Why are they asking for additional money for IT? They have a R1.7 billion contract with Siemens and that should be enough. Siemens should provide whatever they need.”
Ollis adds that Siemens designs software for each department within the DOL and it is only the software for the Compensation Fund that is not being used, as it is inadequate. He says clients' details could not be accessed and so the money there was wasted.
Manyi explained at the portfolio committee meeting that the DOL paid a unitary fee to Siemens every quarter, regardless of whether the software was used or not.
“This means that the labour department has agreed to a ridiculous contract. It's just not workable. It's like putting a gun to your head if you have to pay whether you're using the software or not,” says Ollis.
Figuring it out
Manyi's breakdown at the portfolio committee meeting showed a total of R900 million.
According to the minutes: “Administration accounted for R215 million, inspection and enforcement services R250 million, public employment services R135 million, and labour policy and labour market programmes R300 million.”
Ollis says the only part of this request that is justified is the money to be used for inspectors and vehicles for them, since none have been allocated as yet.
“The labour inspectorate is languishing as it always has without vehicles, uniforms or sufficient staff. Approximately 1 000 inspectors are required to police labour practices in every one of SA's offices,” said Ollis. Apart from this, he says that the request is not at all justified.
The department had not commented by the time of publication.
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