'Tangible' improvements in Limpopo - ANC
Polokwane - The introduction of the Occupation Specific Dispensation (OSD) exacerbated the Limpopo government's overdraft, which led to the province being placed under financial administration, the ANC Caucus in Limpopo said on Tuesday.
"The OSD had an adverse consequence on the provincial purse, because when effected - mainly in the departments of education, health and social development - it was not well appropriated," said chief whip Jan Tsiane.
The caucus expressed relief at the tangible improvements achieved since the national government's intervention.
"To date, the overdraft facility of the Limpopo provincial administration has been drastically reduced to around R1bn and this has improved the cash-flow of the provincial government," he said.
Tsiane said this was attributable to co-operation with the National Treasury.
The caucus noted that there were no regulations for the implementation of the national intervention, and that the Constitution did not make provision for the provincial legislature to be approached in such an event.
"This therefore requires further discussion within both the legislative sector and the African National Congress as an organisation," he said.