There is a simple concept in economics called the cost-value theory. Simply put, it says that businesses should strive to only incur costs if the value derived from the expenditure exceeds the incurred costs. The definition of value is not only monetary, but could include for example enhanced customer satisfaction, or improved employee performance.
The need for government to embrace this simple concept came to mind, when it was revealed that all areas of the South African Police Service (Saps) budget, except for the VIP Protection Service arm was reduced by around 3.2%. When quizzed by journalists, Deputy Minister of Police Cassel Mathale referred to VIP Protection services as “the Executives tools of trade.”
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I am hard pressed to think of any value the citizens of this country derive from the Executive being chauffeured around in ‘blue light’ led convoys, and being surrounded by burly armed protectors, save to inflate their egos and accentuate the ‘big man image’ so beloved of many of their African and Eastern European brethren. Given that even the mayors of even the smallest, sleepiest towns in the country revel in the same level of ‘protection’ afforded to Cabinet Ministers, I would say the DM’s use of the word ‘Executive’ is misplaced.
At last count, the expenditure on VIP Protection across all levels of government, came in at an incredible R2.5bn per year, which is more than the budget for land restitution in this country. And imagine what value could be derived, if even half this amount was spent on effective land restitution.
This revelation followed hard on the heels that both the National Prosecuting Agency (NPA), and the newly formed Special Tribunal attached to the Special Investigating Unit (SIU) had been subjected to reduced budget allocations as well.
It is all just bizarre that as the country flounders on the edge of being engulfed by what commentators have referred to as ‘industrial scale’ looting, the powers that be see fit to allocate more money to politicians perks and privileges, and less to two government agencies fighting to stop us careering over the abyss.
Vijay Naidoo writes in his personal capacity as CEO of the Port Shepstone Business Forum.
The views expressed are the author’s own and do not necessarily reflect those of this publication.
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