The cars South Africa’s ministers can actually afford – all paid for by taxpayers

·3 Aug 2024

The Ministerial Handbook states that all 32 ministers in the newly formed Government of National Unity are allowed to spend R800,000 on a new car fit for duty.

The Ministerial Handbook in South Africa is a detailed guide that outlines the privileges, allowances, and logistical arrangements provided to executive members, such as ministers and deputy ministers.

One important provision relates to the allocation of official vehicles, which has been a topic of public interest and debate.

According to the latest guidelines in the Ministerial Handbook, ministers are authorised to buy official vehicles for their official use.

The maximum amount allocated for these vehicles is set at R800,000, including VAT.

This amount is intended to cover the purchase of a reliable and functional vehicle suitable for a minister’s duties and responsibilities.

The cost of this car is covered by the budget of the relevant department, which is allocated to it by the Treasury. Similarly, expenses related to tyres, fuel, oil, toll fees, and repairs are also covered.

If all ministers’ vehicles, which include two cars per person, were to be replaced at the same time, it would cost taxpayers R51.2 million.

The guidelines also outline when ministers can replace their vehicles – either every five years or when the vehicle reaches 120,000 kilometres, whichever comes first.

The handbook also provides directions on the replacement and maintenance of official vehicles.

The policy ensures that ministers have access to reliable transportation while staying fiscally responsible. The guidelines also cover maintenance costs, allowing for regular servicing to keep the vehicle in good condition, with an emphasis on keeping these costs reasonable and justifiable.

However, despite the limit of R800,000, it is very difficult to know exactly how much the various ministers pay for their cars.

This is because vehicles are bought directly from manufacturers, which allows the government to avoid paying dealer markups and spend less of the taxpayer’s money.

For example, in a recent parliamentary Q&A, the ministers of Small Business Development and Employment and Labour were asked what they spend on their relevant vehicles.

Boh noted that they purchased an Audi Q5 40 TDI for R790,000. However, the starting retail price of this car is currently R1,018,200.

Similarly, in March 2024, The Minister of Finance purchased a BMW X3 xDrive20d for R786,710. the retail price of this car today is R1,097,731.

The decision to allow the purchase of expensive cars for ministers in South Africa has ignited heated debate due to the perceived lavish spending in the midst of wide-ranging socio-economic difficulties.

Detractors argue that allocating substantial funds for luxury vehicles is tone-deaf, especially in light of the country’s high poverty and unemployment rates.

They assert that public funds should be directed toward vital services such as healthcare, education, and infrastructure rather than lavishing government officials with luxury items.

Putting aside the price reductions afforded to ministers, BusinessTech looked at cars that these top officials would be allowed to purchase at retail prices that are currently on the market.

We selected 12 notable vehicles at a retail price tag of around R800,000, which are listed below.

Ford Ranger 2.0 BiTurbo double cab XLT – R767,600