Africa-Press – Namibia. MINISTER of finance Iipumbu Shiimi has effectively shut the door on civil servants’ call for salary increments.
He says the treasury needs about N$1,2 billion to adjust civil servants’ salaries.
Both Shiimi and his counterpart, minister of information and communication technology (ICT) Peya Mushelenga, yesterday said the treasury is simply in no position to afford salary increments.
While addressing the nation at the Government Information Centre he said the prevailing tough economic times are making any adjustment hard.
The government is currently negotiating with the Namibia Public Workers Union (Napwu) and the Namibia National Teachers Union (Nantu), which are the key representatives of civil servants.
Shiimi said the government would need to reallocate finances from other sectors, such as health, and would no longer be in a position to provide healthcare, improve healthcare facilities, or provide funds needed to upgrade school infrastructure if it made leeway for salary adjustments.
“It may also mean we may no longer have the ability to pay civil servants’ salaries. But more importantly, it may also mean we may not have money to pay old-age pensions.
“So all those things would have implications that are going to create difficulties for all Namibians and difficulties for the economy to recover,” he said.
He said the economy should be allowed to recover.
“If economic recovery slows down, it means the government is not even going to get the current revenue we are getting. It will be a question of maybe a few months or a year, and the government will not be in a position to make good on the salaries of civil servants and will no longer be able to pay the current salaries of civil servants, and the old-age pension, and the disability grants. And these are the vulnerable people of our society,” he said.
Shiimi said the government can, however, offer to adjust benefits on a once-off basis, which it can afford.
“Those are the implications on the government’s finances but also on the revenue. As I said, if the government continues to increase civil servants’ salaries, it would have to borrow that money.
“This is just going to complicate our economic situation going forward, but it is also going to make it difficult for the government to help support the economy to grow,” he said.
Mushelenga said civil servants should recognise the fact that the country has been undergoing a number of hardships.
He said the Covid-19 pandemic and the reduction of Southern African Customs Union receipts are a source of the government’s economic predicament.
“All these things have led the Namibian economy to be stagnant, no economic growth, and as a result, the government was unable to increase the salary of civil servants.
“But you would recall that during the time the economy was doing well, the government was able to increase the salaries of civil servants even above the inflation rate,” Mushelenga said.
He said the government is focused on guaranteeing the salaries of civil servants.
“We ensure that we do not retrench any civil servants as it happens for example in the private sector. Under these economic hardships, that is what we have been able to maintain,” he said.
The ICT minister said the offer of N$334,9 million added to the current government expenditure to cater for increments in housing and transport allowances for low-paid workers.
“If you put that money on a salary and it is taxed 100%, it is not the same as you put it on the housing scheme,” he said.
Meanwhile, he said the government is grateful and appreciates the dedication and commitment of civil servants.
“We understand the hardships and the difficulties our civil servants are going through. Obviously.”
Last week Public Service Union of Namibia secretary general Matheus Haakuria told Desert Radio 95.3 FM the government needs to seriously consider salary increments for civil servants who have been on the same salary scale for seven years.
He said it was imperative for the government to note that the cost of living is increasing.
“We have been negotiating and it is important for the government to note that inflation has been going up, but there has not been any movement on salaries,” he said.
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