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Mangi Phetla328
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Limpopo and its finances

10 June 2014, 13:54

The ANC’s delayed deployed expulsion of Cassel Mathale as Limpopo’s Premier has negatively impacted on the provincial audit performance for the 2012/13 year with him eventually only being fired in July 2013.

The New Premier Stan Mathabatha, since taking office, subsequently fired 8 of the 10 MEC’s that was aligned with Mathale, as according to the 2012/13 auditor general report no department received a clean audit report and the department of agriculture has even regressed from a clean audit report to a qualified report.

The province wasted R356 million which could have been avoided had reasonable care been taken. Tenderpreneurs pocketed R 2 billion (that is two thousand million rand) through province’s irregular expenditure due to the violation of treasury laws and the awarding of tenders and contracts and all this happening while national government was in charge of it all.

Health, social development and safety, and Limpopo Gambling Board, could not even provide the auditor general with documentation for expenditure that amounted to R 491 million.

The national administration team that was deployed by Government reduced the unauthorized expenditure from R 724 million in the 2010/11 financial year, but its remains at R 324 million for the 2012/13 and there was absolutely no improvement in the total of irregular, fruitless and wasteful expenditure whatsoever in the 2012/13 financial year.

The national government placed 5 departments in the Limpopo Legislature under administration on December 5th, 2011, after the cabinet cited maladministration, mismanagement and financial corruption to justify the intervention and deployed ‘their own people’ to remedy the situation.

Two years later the Auditor General in his 2012/13 reports states categorically that: (and this even after national intervention)

·         The Department of Education received R 22, 1 billion, the lion’s share of the provinces R 46, 8 billion budget. For the past two consecutive years, since government deployed its own personnel to administer it, the department received disclaimer audit reports, meaning that nothing has been changed. The irregular, expenditure involved R 1, 22 billion, which is more than half of the provincials total amount. It also accounts for more than 96% (R321 million) of total fruitless, and wasteful expenditure. The Auditor General categorically states that the department made minimal progress in addressing issues that was prevalent in the previous years, and that since 2009 it has had 2 MEC’s;

·         The Department of Health has had 4 MEC’s since 2009. It received the 2nd largest budget vote of R 11, 9 billion, but for the past 3 years it has received disclaimer audit reports, and the irregular expenditure in the department amounted to R 571 million with the Auditor General stating that there is no clear policy and operating procedures to govern the supply chain management in the department.

·         The Department of Roads and Transport has had 3 MEC’s in the last 4 years with a budget of R 3, 7 billion. It regressed from an unqualified to a qualified audit report in the 2012/13 year.

·         The Department of Public Works has for the past 2 consecutive years received disclaimer audit reports. It was allocated R 859 million for the past financial year of which R 21,9 million was awarded unlawfully in tenders and contracts, and has had 4 MEC’s since 2009;

·         The Provincial Treasury which should ideally control the provinces purse through its oversight and monitoring power received unqualified audit reports for the past 3 years but they were the ones that caused the provincial collapse in the province in 2011 and since 2009 has had 3 MEC’s.

It seems no one can fix Limpopo – it is beyond fixing!

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