Financial concerns - government steps in

2011-12-05 22:25

Cape Town - The national government is to intervene in the Free State, Gauteng and Limpopo under the Constitution, the Cabinet decided on Monday.

The Cabinet had been concerned about the state of financial management and governance in certain provinces for some time, government spokesperson Jimmy Manyi said in a statement following a special meeting of the executive.

It had received reports on trends in provincial underspending, overspending, and problems with supply chain management, he said.

Having considered the situation in some of the provinces, the Cabinet had decided that the Limpopo provincial government be placed under a section 100(1)(b) intervention of the Constitution.

Free State would be placed under section 100(1)(a) intervention of the Constitution.

The Gauteng premier would sign an agreement with the ministers of health and finance to address financial management problems in the provincial health department and other matters, Manyi said.

Forensic investigations

Forensic investigations with strict timelines would be carried out and there should be consequences for any illegal conduct or maladministration that might be uncovered in the course of such investigation.

MECs, heads of department, chief financial officers and any other appropriate official would be replaced by national acting deployees on a case by case basis.

A monitoring committee would be formed under the leadership of National Treasury and would consist of various ministries.

These included higher education and training, basic education, transport, health, public works, justice, public service and administration.

The committee would be empowered to co-opt any other ministry as it deemed appropriate.

Limpopo

In Limpopo, members of the national executive would assume responsibility for certain departments in line with section 100(1)(b).

These were the provincial treasury, education, transport and roads, health and public works.

Free State

In the Free State, with the agreement of the premier, directives would be issued in line with section 100(1)(a) by the relevant members of the national executive for certain departments.

These were the provincial treasury and police, roads and transport.

Gauteng

In Gauteng, the health department had been facing chronic problems with large accruals and other financial issues. The ministers of health and finance would assist the premier and MEC with financial management issues and supply chain management issues.

In addition, urgent action would be taken in respect of the Gauteng shared services centre, Manyi said.

- SAPA

Read more on:    jimmy manyi  |  bloemfontein  |  polokwane  |  johannesburg  |  government spending  |  politics
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