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Following an emergency meeting on 5 December 2011, Cabinet announced that it would be placing key departments in Limpopo and the Free State under administration, and assisting the Gauteng Department of Health and Social Development with its financial administration and supply chain management processes.

SECTION27 welcomes this decision. In particular, we welcome Cabinet’s move to take action to resolve the financial management crises that are rapidly pushing many provincial departments, and possibly many of the provinces themselves,towards economic collapse.

Recognising the importance of this move, SECTION27 believes that the following issues should be emphasized:

· While the national government’s proposed interventions are in line with its powers and obligations as contemplated by section 100 of the Constitution, it is clear that Cabinet’s decision is long overdue.

· Without this intervention, service delivery in these provinces, particularly with regard to health, would have been further compromised, and might even have collapsed.

· If these interventions are going to result in meaningful and long-term change, the relevant national government departments must develop detailed plans of action that address the fundamental causes, including developing plans to prosecute rampant corruption.

· If these interventions are to make any real difference, the proposed plans of action must not only address issues at the provincial level, but also ensure that national departments are better equipped to fulfil their own obligations; many of them are already under resourced, lacking skilled personnel, and will now have additional responsibilities as a result of the interventions at the provincial sphere of government.