Five Limpopo departments returned

2014-07-28 16:31
Nhlanhla Nene (Picture: AFP)

Nhlanhla Nene (Picture: AFP)

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Johannesburg - Five Limpopo departments placed under administration three years ago have been returned to the provincial administration, Finance Minister Nhlanhla Nene said on Monday.

"This means that the MECs of the affected provincial departments will assume full executive powers to run the departments and the accounting officer role will revert back to HODs of the respective departments," said Nene.

He said premier Stan Mathabatha and his executive would resume full responsibility over administration.

The departments were placed under administration in 2011 by cabinet, because of financial management problems and a high level of maladministration.

These included service providers being paid twice a week, which led to cash-flow problems.

He said the financial position regarding cash, solvency, and budget had been stabilised.

"A new cash management process has been put in place in conjunction with the province's new banker," he said.

"The provincial treasury now retains even greater control over movements or transfers of funds than before. These controls are among the most stringent of any province."

Addressing a media briefing, Nene said cabinet had approved the transition.

Section 100 (1)(b) intervention in Limpopo had achieved its objective, which was the successful turnaround of financial management and governance in the province, he said.

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