Limpopo no longer under administration

2015-02-02 13:54

The national government has handed powers back to Limpopo after placing it under administration more than three years ago, the finance ministry said.

“This means that the MECs of the affected provincial departments have assumed their full executive powers and the accounting officer roles have reverted back to the heads of departments,” it said today.

“The intervention has brought a significant level of financial health to Limpopo, as well as initiating a number of important projects that the province could carry into the future under the leadership of the provincial executive council and the guidance of national departments.”

This came into effect at the end of January.

In July, five of Limpopo’s departments placed under administration – provincial treasury, education, roads and transport, public works, and health and social development – were returned to the provincial administration’s control.

The departments were placed under administration in 2011 by the Cabinet, because of a lack of financial management and a high level of maladministration. Problems included service providers being paid twice a week, which led to cash-flow problems.

The ministry said today that new systems had been put in place for asset management, supply chain management and revised organisational structures for provincial treasury.

“To ensure an orderly handover, the administrators will still be part of preparing the annual financial accounts for 2014-2015 which ends on March 31,” it said.

“This will allow the administrators to close the books for the departments they have been administering and prepare the relevant handover reports.”

The province would be provided with support to avoid a relapse.

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