Government was not lying when it said that it could not afford public servants' demand of 8,6% salary increment, Police Minister Nathi Mthethwa said on Sunday.

"Government cannot say that there is no money if there is money. The truth of the matter is that many government services will be affected if government go beyond what it has," said Mthethwa. He was speaking in Shongweni outside Durban during the commemoration of the signing of the peace accord between Inkatha Freedom Party and the African National Congress in 1989.

Mthethwa said that he was one of the ministers who had been told by Finance Minister Pravin Gordhan that his department's budget would be cut if the 8,6% demand was implemented.

He said that he did not know where to cut.

"The government has said that it can afford to pay extra R5-billion to public servants. We don't know where the other money will come from," he said.

About 1,3-million public servants, both from the Congress of South African Trade Unions (Cosatu) and the Independent Labour Caucus, entered a third week of striking to push for an 8,6% salary increase and R1 000 monthly housing allowance.

Mthethwa also criticised the behaviour of some striking public servants, saying that the disruption of health services and the intimidation of non striking workers was unacceptable.

"If they do that, the police must deal with them. We have heard a lot of inflammatory statements and incitements," he said.

Mthethwa said that he was happy that more than 100 people of Shongweni were working as volunteers during the strike.