NELSPRUIT – Specific provincial departments were singled out after the expenditure reports and budgets of all the departments were presented by the Provincial Treasury. The financial state of the departments of agriculture, rural development and land administration (Dardla), community safety, and health are in a bad state, according to Mr Madala Masuku, MEC for the Department of Finance.
The department of health was asked to reprioritise its budget as it had cash flow problems. Its accruals amount to R247 million, making its stated objectives for this financial year impossible to achieve. Shockingly, it had also budgeted R364 million for overtime work.
The treasury reported that the department of safety had requested additional funding of R275 million as it was expected to run out of cash in February. This was due to security services that had created serious challenges for the management and administration of the department’s budget items.
Treasury also said future payments for security service may be impossible due to the unavailability of funds. According to the department, Dardla was also under severe pressure due to accruals while performance was relatively low. The department’s accruals had increased by R113 million in the second quarter.
It said its huge financial challenges were partially caused by overspending. The department filled posts without necessary funding and was currently not in a position to replace resignations. According to the second-quarter report, it would be unable to meet its targets this year despite the budget being spent in full.
The finance department recommended that the three departments be given special attention. The premier, Mr David Mabuza, also instructed that they be given intensified financial-management support by his own office and treasury.
According to Mr Zibonele Mncwango, spokesman for the premier’s office, the support teams to be dispatched would monitor the spending and provide spending plans. Financial transactions would be administered by the treasury and they would be assisted to reprioritise until they could function on their own.
