Constitutional Court confirms Ramaphosa’s Cabinet broke the law to fund salary increases
28 February 2022
Note to Editors: Please find attached soundbite by Dr Leon Schreiber MP.
In a landmark ruling, the Constitutional Court today completely vindicated the DA’s longstanding opposition to the abuse of taxpayer money to fund the outrageous public sector salary increases that are bankrupting our country. The Court found that President Cyril Ramaphosa’s Cabinet – led by the Minister of Public Service and Administration, Ayanda Dlodlo – broke the law when it granted an unfunded R30.2 billion wage increase for public service employees under an illegal three-year wage deal signed in 2018. This illegal increase was over and above the R128.5 billion that had already been set aside by Parliament for salary increases in 2018, 2019 and 2020.
In its judgement, the Constitutional Court upheld an earlier Labour Court ruling that the Cabinet’s decision to funnel this additional R30.2 billion into the pockets of public servants and the thousands of ANC cadres “deployed” to capture the state violated clauses 78 and 79 of the 2016 Public Service Regulations and was therefore “invalid, unlawful and unenforceable.” In the process, the highest court in the land also upheld the Labour Court ruling that President Ramaphosa’s government violated sections 213 and 215 of the Constitution when it granted the illegal increase.
The 2016 Regulations clearly stipulate that any proposed wage increase must either be covered out of the existing budgets of government departments or be accompanied by an explicit undertaking from National Treasury that it would fund the increases. In clear violation of the law, the Court ruling confirms that, on 21 May 2018 – three months after Ramaphosa became President – “the State entered into an agreement with the relevant trade union representatives” for a salary increase that exceeded the R128.5 billion made available by Parliament for compensation of employees by an additional R30.2 billion (according to Treasury, this amount ultimately ballooned to R37.8 billion).