Premier 'saves' R8bn

Gauteng Premier Nomvula Mokonyane's administration has saved taxpayers R8-billion through reviewing and cancelling unnecessary contracts signed by the previous administration.

Revealing details at the Gauteng Legislature yesterday, finance MEC Mandla Nkomfe said by instilling sound corporate governance and fiscal discipline alone, provincial government departments were able to save R87.6-million.

When Mokonyane took office last year, she embarked on a "reprioritisation plan".

At the time she said the plan was to redirect resources to where they are most needed. She asked that all contracts be revisited. Cancelled contracts include:

• The Gauteng Motosport contracts.

• In June the Gauteng Shared Services Centre cancelled a R1-billion contract with Sibize International Calling.

Nkomfe said the province would have to pay penalties for breaching contracts.