Congress Of South African Trade Unions Condemns Treasury For Increasing Ministerial Vehicle Allowance Cap To Over One Million Rand

COSATU criticizes the South African government for raising the ministerial vehicle cap to R1.1 million. Finance Minister Enoch Godongwana cites inflation as the cause.

By: AXL Media

Published: Apr 2, 2026, 9:17 AM EDT

Source: The information in this article was sourced from Eyewitness News

Labor Federation Opposes Executive Luxury Spending

The Congress of South African Trade Unions, widely known as COSATU, has issued a scathing critique of the National Treasury's decision to significantly raise the spending limit for official vehicles. The new regulation increases the procurement cap for ministers and provincial premiers from R800,000 to R1.1 million. COSATU leadership has described the move as a "callous" prioritization of political luxury over the needs of the struggling South African working class.

National Treasury Defends Inflationary Adjustments

The policy shift was confirmed by Finance Minister Enoch Godongwana in a formal response to parliamentary questioning. Godongwana argued that the previous R800,000 limit, established in 2019, has been rendered obsolete by five years of inflation. He noted that government departments have submitted numerous complaints regarding their inability to source vehicles that meet the necessary security and VIP technical requirements within the old budget constraints.

Conflict With National Austerity Mandates

A primary point of contention for labor organizers is the contradiction between this allowance increase and the state's broader fiscal strategy. Matthew Parks, representing COSATU, pointed out that the government is simultaneously pushing for austerity measures, including potential increases to Value Added Tax (VAT), which directly impact the poor. The union argues that raising luxury caps while imposing fiscal discipline on the public highlights a significant "morality crisis" within the state's budgeting priorities.