Wednesday 26 February 2014

Namibia: civil service expands by 15 000

Despite complains from government leaders for nearly two decades that the civil service was bloated and inefficient, the number of government employees have continued rising sharply and will balloon by another 15 000 in the coming few years to about 130 000.
In the National Budget tabled last week by finance minister Saara Kuugongelwa-Amadhila, funding for 14 741 new positions has been set aside.

Salaries and related conditions of employment for individual employees are expected to gobble up more than a third of the total budget.

At the moment there are 97 535 civil servants employed but the structure provides for 129 560 positions. With the 14 741 positions set to be filled in the fin newancial year, the number of civil servants will reach 112 276.

Among institutions set to recruit the most workers is the police force with 18 475 positions funded compared to 16 781 at present. The department has an establishment of 27 894 positions.

The Namibia Defence Force has 3 549 new positions funded in the budget compared to 16 781 filled at present. The defence force has an establishment of 26 445 positions according to the document. The education ministry will see 4 859 new positions funded in the budget from the 34 590 positions filled at present. The education establishment provides for 39 193 positions.

The latest figures contradict pronouncements by government leaders such as Prime Minister Hage Geingob and Kuugongelwa-Amadhila who have raised concerns about the bloated civil service and suggested it should be leaner.

A government study called the Wages and Salary Commission (Wascom) in 1996 recommended that Namibia should have a smaller, better paid, more professional and more efficient public service. Even at about 60 000 employees at the turn of this century, the civil service was considered too saturated with unnecessary positions filled.

By some estimates as much as 55 percent of all Namibian employment in the government sector, including parastatals.

The budget document also shows that the ministry of health is not understaffed as commonly perceived with only 1 210 new positions funded from the current 9 625 positions that are filled at present. This will result in 10 835 positions being filled against the establishment provision of 10 852 positions.

The prisons ministry is one of the most understaffed government institutions, according to the document, with only 2 038 positions filled out of a provision of 6 209 positions in the establishment. Only one new position has been funded in the 2014/2015 budget.

Personnel expenditure for the civil service is set to increase to N$21 billion in the 2014/15 budget from N$17 billion in 2013/14 with a further increase to N$22 billion in 2015/2016 and N$23 billion in 2016/2017.

Minister Kuugongelwa-Amadhila said in an interview yesterday that the funding of new provisions is based on recommendations by the various institutions with the approval of the Public Service Commission. The budget has 31 votes, which includes the Office of the President, Office of Prime Minister, the National Assembly, the Auditor General, the National Council, the Electoral Commission of Namibia and the various ministries.

In a statement released yesterday by the Namibia Chamber of Commerce and Industry on the post-budget discussion hosted by the chamber on Friday, Kuugongelwa-Amadhila was quoted as saying increases (in personnel expenditure) were necessary to ensure that government could offer market related wages therefore attracting and retaining skilled workers who are currently shunning government service.

James Cumming, Head of Research at Simonis Storm Securities said he was concerned about the over-reliance of revenue from the SACU pool. He said the government must diversify its revenue sources as future adjustments to the SACU revenue formula could lead to lower revenue receipts.

In response, the minister said new sources of revenue have been identified with preliminary studies already underway in order to secure a consistent revenue stream in future.

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