Ramathuba is still concerned about the performance of some state-owned entities in Limpopo
Limpopo Premier Phophi Ramathuba has given herself a pat on the back after the province scored five clean audits from the Auditor General of South Africa.
This comes after the province was placed under administration in 2012.
This effectively placed five Limpopo provincial departments, namely provincial treasury, education, transport and roads, health, and public works, under the national executive administration. Underspending, overspending and supply chain management debacles were identified as some of the province’s major challenges.
Limpopo’s audit outcomes
This week, the Limpopo government announced that out of the 10 provincial departments, five attained clean audit opinions, while five obtained unqualified audit opinions.
“If you look at where we come from… we are on the right path of bringing public confidence,” said Ramathuba in a statement.
“The office of the premier, provincial treasury, sport and recreation [departments] have maintained their clean audits. We are excited because Limpopo Economic Development, Environment and Tourism has come on board with a clean audit. This gives us comfort that we can confidently approach investors with assurance that we have sound financial management,” she said.
The Department of Transport and Community Safety has also joined this community of clean audits.
“We are looking at departments like agriculture and rural development and social development as departments that, in the next audits, must join the clean audit group. Health has retained its unqualified audit opinion, but has improved because its performance information has been unqualified for the first time. Public works, roads and infrastructure, social development and education were qualified last year, and this year, they all have unqualified audit outcomes,” she said.
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Ramathuba said public works and education were the province’s pride, especially education, since 50% of the provincial budget was allocated to it.
“Education, health and public works take almost 80% of the provincial budget which then gives us reasons to celebrate their achievements as we know that the bulk of our money is taken care of,” she said.
Esther Mokoele, the chairperson of the Standing Committee on Public Accounts (Scopa) in the Limpopo legislature, said the audit outcomes are a sign of a “public service that is poised to build a culture of accountability and spending public resources in a responsible manner”.
State-owned entities still a problem
But the premier is concerned about the performance of some state-owned entities in the province. She said the Limpopo Tourism Agency had retained its clean audit, whereas the Limpopo Gambling Board had also gone to unqualified with emphasis, adding that if well managed, the future for the two would always look green.
An independent political analyst, Solly Rachilo, said Ramathuba’s achievement in audits reinforces her administration’s commitment to fiscal discipline. He said the positive audit outcome was a significant boost for her bid to become the ANC Limpopo provincial chairperson, a position currently held by Chupu Stan Mathabatha.
“It provides her with a credible, results-based platform to argue that she is the ethical and competent leader needed to drive the ANC’s agenda of renewal and accountability.
“Securing the chairmanship would consolidate the province’s political and administrative power in her hands and address the challenge of ‘two centres of power’ in the province. The timing is opportune, as the current chair, Stan Mathabatha, has faced reported controversies and attempted to step aside from the role, potentially weakening his position against a challenge from a premier with a strong record of financial performance,” said Rachilo.
