Poor oversight led to Limpopo shortfall: Fedusa

2012-01-20 10:52

Limpopo’s potential shortfall of R2 billion is a result of poor oversight and a lack of clear policy direction, the Federation of Unions of SA (Fedusa) said today.

“How can a province be facing a potential shortfall of R2 billion before national government steps in? Fedusa cannot believe this blatant squandering of taxpayers’ money,” general secretary Dennis George said.

“Poor oversight and the lack of clear policy direction, as can be seen in the case of the Limpopo province has led to diminishing services to the people and the economy as a whole.”

Yesterday, Finance Minister Pravin Gordhan briefed the media on Cabinet’s initial findings into the province’s financial crisis.

At the end of last year it emerged that the province could not pay its civil servants and was broke.

This was because of its large accumulated unauthorised expenditure which had grown from R1.5 billion in 2009 to R2.7 billion in 2011, Gordhan said.

Five departments – finance, education, health and social development, public works, and education – were under complete control of the national government.

The remaining departments were operating under guidelines provided by the national government.

Gordhan said a forensic investigation into the shortfall would begin this week.

“As and when any evidence of breaking the law is revealed by the forensic investigation, the perpetrators will be charged, whether they are government employees or service providers, and we will have special courts, World Cup 2010 style, on standby,” he said.

George said the public needed assurance that the people who caused the financial crises would be reprimanded.

“We need to know exactly how this financial fiasco happened and, more importantly, taxpayers need to be assured that the perpetrators of bribery, corruption, maladministration, and wasteful expenditure will be brought to book,” he said.

“Fedusa urges government to cease its policy of cadre deployment and combat corruption in local, provincial, and national government so that the necessary services can be delivered to our people.”

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.