COSATU slams government for raising ministers' car cap to R1.1m

The Congress of South African Trade Unions (COSATU) has condemned the National Treasury for raising the official vehicle cap for ministers and premiers from R800,000 to R1.1 million, calling the move “tone-deaf” and an insult to struggling South Africans.

COSATU has criticised the increase, saying it contradicts ongoing austerity measures, including efforts to raise VAT.

This follows Finance Minister Enoch Godongwana's response to a parliamentary question, in which he defended the increase, saying departments are struggling to find cars that are suitable and properly equipped for politicians within the R800,000 limit.

In response to a question by Build One SA MP Nobuntu HLazo-Webster about the fiscal considerations when determining car allowances, Godongwana said the previous threshold is now outdated.

He said National Treasury received numerous submissions and complaints from departments that the R800,000 limit was insufficient for vehicles with VIP security requirements.

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He added that inflation over the past five years had eroded the value of the old limit, pushing the cost of most suitable vehicles above it, to a maximum of R1.1 million.

The adjustment marks the first increase in official vehicle procurement limits since 2019.

But COSATU's Matthew Parks has called the move an insult to struggling South Africans.

"This callous decision by treasury highlights a budget priority and morality crisis afflicting the state, where R4 billion is allocated to provide bodyguards for politicians but only R3 billion can be found for small business development."

Parks has called on President Cyril Ramaphosa to reverse the decision.