The KwaZulu-Natal Provincial Treasury in partnership with the Office of the Premier and the KZN Financial Literacy Association hosted on Friday, 1 November 2013 a Government Employees Festive Spending Summit in Ulundi as part of its drive to help indebted government employees.
The summit follows capacity building workshops on Debt Counselling and Emolument Attachment Orders (commonly known as Garnishee orders), for Employee Wellness Practitioners and other practitioners who deal with the implementation of EAOs. These practitioners play a role to provide advice, counselling and referrals to minimise the negative impact of the financial burdens.
The training has been conducted by the National Credit Regulator and Justice College. As a result of its success, it was agreed that the training must continue and should target all relevant stakeholders and employees at all levels within the workplace.
KwaZulu-Natal is the first province that initiated a programme to assist employees with financial education. Earlier this year Finance Minister Pravin Gordhan and the Banking Association of South Africa emphasised the importance of finding a solution to the indebtedness of Public Servants.
The workshops and summit are a response to the high number of indebted government employees, as well as high incidents of fraudulent EAOs.
Research has proven that indebtedness often results in high absenteeism from work, low productivity, fraud and corruption. It is therefore in the government’s best interest to deal with the issue of over indebtedness of its employees.
Provincial Treasury Head of Department, Mr Simiso Magagula urged civil servants not to become bill collectors. “This inability to manage their own resources may create uncertainty on the level of trust, honesty and integrity with which they would manage departmental budgets and assets. And the burden that it places on employees and institutions is far reaching.”
Warning public servants against the festive spending debt trap, he provided tips on sound financial management and having a good time on a low budget.
Mr Didi Sebothoma took the audience of approximately 300 (from all provincial departments and the local and district municipality) through the National Credit Act and pointed out the pitfalls.
This was followed by testimonials from government employees who have conquered their debt problems, as well as presentations from Consumer Protection by Mr Lucky Rabotapi (KZN Department of Economic Development and Tourism) and Mr Mdu Mthethwa from the South African Revenue Services who explained to employees how their TAX returns work.
Human Resources Acting General Manager at the Office of the Premier, Mr Mzwandile Gumede emphasised that debt is not a crime. “Everyone in every income bracket is at risk. However, it has to be addressed and it can also be prevented by proper financial planning and advice.”
KZNFLA champion, Ina Cronjé, MEC for Finance, said “we want to get our employees out of the debt spiral. Those who are not in debt yet must be helped to stay out of debt and to avoid garnishee orders at all cost, and to assist those who are already in debts with the best way of dealing with EAOs. People, who are heavily indebted, are not fully work fit and motivated to be productive. It can affect their health, resulting in stress, a negative state of mind and high absenteeism. If people are in debt, they get easily tempted to be involved in corrupt practices and this makes our efforts to fight fraud and corruption difficult. Our mission through financial literacy is to ensure that people know how to use money wisely and that they don’t live a life of misery as a result of indebtedness.”
Meanwhile a national task team headed by Credit Ombudsman Manie van Schalkwyk has been established to investigate current practices and establish a code of conduct to address concerns related to Emolument Attachment Orders.
For more information contact:
Mr Ntokozo Maphisa
Cell: 082 773 0937
E-mail: Ntokozo.maphisa@gmail.com
Ms Ntokozo Zikalala
Cell: 079 500 2093
Background information on the KZNFLA:
The KwaZulu-Natal Financial Literacy Association (KZNFLA) was established on 25 January 2011 under the auspices of KZN Finance MEC Ina Cronjé. The Association’s purpose is to address financial illiteracy in the Province.
The Association, which now comprises 100 entities (financial institutions, regulatory bodies, academic institutions, NGOs, business chambers and government departments), co-ordinate and offer financial education to six focus groups:
- In School Youth
- Out of School Youth
- Women and vulnerable groups
- SMMEs and Co-operatives
- Government employees
- Traditional Leaders (to be launched on 14 November 2013)
