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The Eastern Cape government is clamping down on municipalities and government institutions that host official meetings and events in other provinces, saying the practice is draining much-needed public funds from the provincial economy.
In a directive issued to municipalities on Monday, premier Oscar Mabuyane said the government had noted with concern the growing number of conferences and meetings being held elsewhere in SA despite the Eastern Cape offering a wide range of venues and tourism facilities.
He said the spending of public money outside the province was undermining efforts to stimulate economic growth in a region struggling with low growth levels and high unemployment.
“Despite being renowned as a province with unmatched beauty, vibrance, wealth of natural resources and abundant tourist attractions, the Eastern Cape continues to be one of the provinces with low economic growth profiles.”
He said one of the contributing factors was insufficient investment in the provincial economy by both the public and private sectors.
As a result, government institutions were expected to play a more active role in ensuring public expenditure benefited local businesses and communities.
Instructing municipalities to stop hosting events outside the province, Mabuyane also urged them to use venues and facilities in their jurisdictions when hosting official gatherings.
Mbhashe Local Municipality spokesperson Babalwa Magqwanti said the municipality welcomed the directive, though it did not hold meetings outside the province.
It only hosted gatherings outside its jurisdiction when there were venue capacity constraints locally, leading it to use facilities in the Amathole district in areas such as Mpekweni and Chintsa.
She said the municipality was planning to develop a conference venue and accommodation facility in Dutywa.
Mnquma municipality spokesperson Loyiso Mpalatshane said it had not convened meetings outside the province.
“In isolated instances where we’ve gone outside Mnquma, this is largely due to lack of adequate facilities to host large-scale strategic sessions and allow for convenience for our stakeholders.”
Amathole District Municipality spokesperson Sisa Msiwa said the municipality had always strived to host official meetings within its jurisdiction.
“While the premier’s directive does not require any change in our current practice, ADM supports the intent of the directive, which is to keep public spend within the Eastern Cape,” she said.
The Buffalo City Metro also welcomed the directive. City spokesperson Luzuko Buku said the metro was not the primary target of the directive.
“It is, in fact, other municipalities that come to our city in numbers, a reality that our hospitality industry appreciates.
“Through our hospitality partners, Buffalo City has adequate spaces for hosting major conferences, even those of the national government.
“The [metro] will never go to another province to host its internal meetings and even the old practice of visiting neighbouring conference centres has been drastically curtailed.”
The municipality has, however, previously held meetings at the Mpekweni Beach Resort.
Among the municipalities that have opted to host official programmes outside the Eastern Cape is the Alfred Nzo District Mmunicipality, which convened a strategic planning session at Durban’s Sibaya Hotel in April.
The Matatiele Local Municipality also appears to have held meetings outside the province, including at the San Lameer Resort Hotel & Spa and Protea Hotel Umhlanga, both in KwaZulu-Natal.
Speaking during an accountability session at the East London IDZ this week, Mabuyane said: “You know, when the national [budget] is allocated to provinces and municipalities, it is mandated to be spent there.
“Ideally, you should be spending every random cent in that corner. Because that money is meant to trigger development from the public point of view.
“When you leave this place ... you become a tourist because you are going into a hospitality space, you are sleeping in hotels, so you will never develop your area.”
Black Business Forum chair Luthando Bara welcomed the decision.
“Every rand spent by the state has the potential to support local jobs, sustain businesses and contribute to the growth of the provincial economy.”
EFF MPL Simthembile Madikizela said the party supported the principle behind the directive.
“It is unacceptable that, while our province battles unemployment exceeding 45%, government officials continue spending taxpayers’ money on workshops, conferences and meetings in luxury hotels in Durban, Cape Town and Gauteng,” he said.
DA MPL Andrew Whitfield also welcomed the directive but said more needed to be done to curb unauthorised, irregular, fruitless and wasteful expenditure.
“The financial waste in our municipalities is staggering, with the province recording R3.31bn in unauthorised expenditure in one year.
“The Treasury has now withheld the equitable share allocations to six [Eastern Cape] municipalities.
“Maximising every cent of every rand is critical to ensuring that services can be delivered and economic development can take place.”
Daily Dispatch
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