SA government 'will scrutinise infrastructure spending'

18 February 2010

The finance minister of South Africa Pravin Gordhan has warned enterprises that are owned by the state that they must keep their spending in check.

He explained that the government planned to scrutinise how money was being spent and that such firms must beware of this development.

Transport infrastructure is going to see significant financial investments this year, Mr Gordhan added.

As well as this sector, electricity, road and rail will also see extended works.

Speaking yesterday (February 17th), the finance minister claimed that state-owned enterprises sometimes have a tendency to notch-up high bills and spend on certain luxury items.

"We will be conducting comprehensive evaluations of several key spending areas this year with a view to eliminating ineffective programmes and generally improving value for money," he warned.

Despite this increased scrutiny, the government also agreed to double its state-owned entities and development institutions.

President of South Africa Jacob Zuma also spoke yesterday about the country's infrastructure.

He revealed that the government does not intend to introduce nationalisation.