Gauteng is not under administration, says premier

2011-12-06 13:00

The Gauteng provincial government has not been placed under administration, Premier Nomvula Mokonyane said today.

“We have not been placed under administration and we have not acted against any legal or political mandate,” she said.

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

He said the provincial 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.

Mokonyane said the Gauteng provincial government was concerned about how Cabinet’s statement had been interpreted in the public arena.

“It is important to note that in as far as our province is concerned, the national Treasury has welcomed our intervention in the department of health and social development, including our financial management approach,” she said.

The signing of the agreement with the ministers of health and finance would be the “beginning and the end of national government’s engagement in our province”.

Mokonyane said the problems with financial management and cash flow in the departments of health and social development were well documented.

“It is no secret that the health arm of the department has been plagued by financial management and procurement issues as far back as 2005.

“As a proactive administration that is concerned with clean governance, we took a number of corrective steps to remedy the situation – approaching national Treasury for guidance being one of them.”

Before that, the government had also decentralised the procurement of certain essential goods and services to give hospital CEOs control over some parts of their budgets.

“In that way, the turnaround time will be greatly improved as opposed to the current situation where suppliers’ invoices are submitted at hospitals, then sent to the department and then finally get to the Gauteng Shared Services Centre to be paid.”

The province had also tackled overexpenditure and accruals through cost-cutting and reprioritising funds, she said.

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