Focus shifts as Limpopo is now financially stable
While the province's finances have stabilised, there are still areas that need to be addressed.
POLOKWANE – While the province’s finances have stabilised, there are still areas that need to be addressed.
This was announced during a press conference at which premier Stanley Mathabatha and finance minister Nhlanhle Nene were present on Monday.
Nene said the intervention had achieved its objective, which was the successful turnaround of financial management and governance in the province.
Nene said there was a clear plan for the province to complete remaining tasks and deal with systemic challenges and risks.
He said while the Section 100 (1) (b) intervention had been lifted, it had been replaced with the less invasive Section 100 (1) (a), meaning that national government would continue to play an oversight role.
Matters that still needed to be addressed included the conclusion of disciplinary and criminal cases, the appointment of competent senior managers in key positions, addressing the skills gaps in financial management and infrastructure, and resolving weaknesses in supply chain management systems.
“The intervention team has, in collaboration with provincial heads of departments, put in place sustainability projects that respond to these systemic challenges.
“Addressing these systemic challenges and maintaining the financial stability of the province will require commitment and ownership by the premier and the provincial executive,” Nene said.
In 2011/12, the Limpopo government had accumulated unauthorised expenditure of R2,7 billion, exhausted its overdraft limits with its commercial banker to the tune of R500 million and had an overdraft of R757 million with the South African Reserve Bank.
Five government departments were put under administration in terms of Section 100 (1) (b) of the Constitution in December 2011. This meant effective control of the departments of health and social development, roads and transport, education, public works and treasury were taken over by the national government.
Mathabatha expressed his gratitude towards the intervention team and said the situation would have been far more serious without the intervention. He added that he hoped the remaining matters would not take long to resolve.
