The Treasury has put the brakes on planned spending on the national dialogue by banning air travel for delegates in three provinces neighbouring Gauteng, capping costs for hotel stays and halting the purchase of smartphones for facilitators.
These are among the measures to ensure a major cost reduction ahead of the first national convention to be held from Friday until Sunday. The national convention is a preparatory platform that will start the national dialogue and its agenda.
At least 800 delegates are expected to form part of the dialogue scheduled for August 15 at Unisa’s main campus in Pretoria, with eminent people from different groups expected to lead discussions.
Delegates from Mpumalanga, North West and Limpopo have been prohibited from using air travel, according to one insider. In addition, spending on the hosting of the secretariat of the dialogue within the National Economic and Labour Council (Nedlac) has been cut after a plan to buy cellphones for facilitators was shelved by the Treasury.
“Nedlac will now provide a monthly user allowance of R300 per facilitator for airtime and data,” said another insider.
Sowetan reported that in addition to the cost-cutting measures, the government planned to revive the Solidarity Fund as a platform to manage private sector contributions for the national dialogue.
The fund previously operated as a rapid response support vehicle for the government’s response to the Covid-19 pandemic. It will now be tasked with accepting contributions from civil society and philanthropies that will offer financial and in-kind support.
Insiders said the government was planning to contribute up to 60% of the projected R450.4m cost of the dialogue, while the remainder would come from the private sector in various forms.
The spending cut will see projected overhead costs for the opening convention slashed from an initial R24.5m to R8.6m, largely due to confirmed in-kind sponsorships, according to sources.
“All pre-existing budget allocations for public engagement, including imbizos, dialogues on social cohesion, moral regeneration programmes and constituency engagements, must be repurposed to support the national dialogue,” said one insider.
“To minimise personnel-related expenses, departments are encouraged to explore the secondment of staff to support the dialogue,” the source told Sowetan.
Last week, several key foundations announced their withdrawal from the preparatory task team for the opening convention of the national dialogue, citing complaints about the principles underpinning it. These included the Thabo Mbeki, Steve Biko, Chief Albert Luthuli, Desmond and Leah Tutu Legacy and FW de Klerk foundations.
Sunday Times reported at the weekend that the costs of the dialogue and who runs it were sticking points that led to the foundations pulling out. On Sunday, presidency spokesperson Vincent Magwenya confirmed that the government had been working to mobilise resources for the convention and manage costs.
“As it stands, venues have been secured for the plenary, [including] two overflow venues with live-streaming [facilities], 10 breakaway venues, dining areas and work areas,” he said.
Magwenya said Unisa had decided to support catering, printing, technical services and other logistics, which could see about R5m being saved.
Sowetan understands that the costs for conference booklets, bags, notebooks, pens, lanyards and T-shirts have been removed from the government budget and will be provided in kind by Unisa.
Magwenya said the costs of the first convention were being funded from the existing budgets of Nedlac and the presidency for secretariat support, communications and logistics.
He added that all procurement and management of public funds would adhere to the Public Finance Management Act and applicable Treasury regulations, and the funds would be accounted for through the normal public finance mechanisms.
Insiders said the Treasury had directed provincial and municipal governments to facilitate the use of public venues and facilities for activities related to the national dialogue at no additional cost.
Sources have also said that the government had arranged reduced rates for delegates at selected Pretoria hotels. Rates for hotels would range from R1,500 to R1,700 a night, which would cut costs significantly for 800 delegates, compared to the initial estimate of R2,500 per room. The executive room rates will be capped at R4,500.
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