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DA: Statement by Alf Lees, Democratic Alliance member of the NCOP, on the Limpopo province being under administration (09/02/2012)

9th February 2012

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The Ministers of Finance, Education, Higher Education, Health and Public Works briefed the NCOP Select Committee on Finance today about government’s interventions into the Limpopo, Free State and Gauteng provincial governments.

The outcome of the briefing is clear: the rot runs much deeper than ever expected and implicates literally hundreds of state officials across the three provincial governments.

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These people who did not do their jobs properly should be removed from office and prosecuted in cases where corruption occurred. The Democratic Alliance (DA) in the three provinces will take up this issue in the relevant provincial legislatures to ensure that those responsible are held to account.

The Minister of Finance revealed a long list of problems in the three provinces, pointing to rampant maladministration and corruption. The most problematic cases in each of the three provinces are:

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Gauteng

• The Health Department could not account for R3.1 billion in assets listed in its books.
• The Health Department accumulated R4.74 billion in unauthorised expenditure in 2011.
• Mutliple supply chain leakages across all departments have lead to losses and payment confusion.


Free State

• 23 Road building contracts were awarded without proper tender processes.
• The Departments of Police, Roads and Transport overspent its budget by R450 million during the 2011/2012 financial year.
• Free State Treasury was not able to implement financial management and fiscal discipline in government departments.

Limpopo

• Limpopo Treasury did not have the cash to meet its most basic obligations, meaning that teachers, nurses, doctors and outstanding creditors were not going to be paid.
• Unauthorised expenditure to the tune of R2.7 billion was incurred.
• Management of provincial treasury has “completely collapsed”.
• The Education Department could not produce a credible budget.
• Public Works had no asset management system in place.
• Multiple violations of the PFMA occurred across the entire Limpopo government, with countless contracts being awarded without proper tenders going out.

The fact of the matter is that the people of Limpopo, the Free Sate and Gauteng are receiving weaker service delivery because their respective provincial governments are not doing proper jobs. This experience is a testament to what happens when governments become arrogant and take the support of the people for granted.
 

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