Criticism of minister Siphiwe Nyanda's recent splurge on two luxury BMWs is unjustified, as all official steps were followed, says the Department of Communications (DOC). In a statement, the department says: “The process of procuring the vehicles for minister Nyanda was done in accordance with prescribed guidelines, which are stipulated in the ministerial handbook.”
Nyanda purchased two BMW 750i sedans, for R2.2 million. Each car is valued at R1 135 000 and collectively come with R148 000 worth of extra features. The 4.3-litre, V8-engined cars are the latest 2009 models of the German manufacturer's flagship 7-series range. One has been purchased for Nyanda's office in Pretoria, while he will use the other in Cape Town.
The ministerial handbook notes that “ministers can exercise their own personal preference in terms of the make and type of vehicle to be procured, as long as they remain within the 70% of their annual salary limit”. According to the DOC, this rule applies to each of the minister's offices and the prescribed value includes whatever additional accessories that may come with a vehicle. The statement notes the DOC chose the “full maintenance lease” option from three purchasing options provided by the Department of Transport. The DOC says this option “brings the actual cost of the vehicles to government to the market value of the vehicle, less the residual value, which is on average 30%”. The department, however, failed to explain exactly what this means in terms of the final amount and was unavailable for comment.
Meanwhile, the Communication Workers Union (CWU) says it has scheduled meetings with the department to get detailed information on the minister's spending. The union says it is looking for an explanation from the department. “The CWU sees this matter as important, given the current economic situation. But it is important to get accurate information regarding the purchases. If the cars had reached their limits, they should be replaced – but more information is required,” said CWU secretary general, Gallant Roberts. The union, however, reserved any further comment, saying it will hold meetings with the department on Wednesday and will make a detailed statement following its discussions.
Source: IT Web
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