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Sat May 25 17:27:12 SAST 2013

Gauteng asks National Treasury for bailout

AMUKELANI CHAUKE | 05 December, 2011 23:5519 Comments
Gauteng Premier Nomvula Mokonyane. File photo.
Image by: THYS DULLAART

Gauteng, South Africa's economic hub, is sinking into debt and its bid to get a R627-million bailout from the National Treasury has resulted in the province being put under a financial microscope.

It took a decision to ask for a bailout to pay for "higher than budgeted for" salary increases brought about by wage negotiations with unions and infrastructure maintenance as a result of floods, among others.

Gauteng p remier Nomvula Mokonyane will sign an agreement with Finance Minister Pravin Gordhan and Health Minister Aaron Motsoaledi, who will manage the "chronic" problems relating to the provincial health department.

While Mokonyane has tried to rid the province of dodgy tenders ever since she took over, including cancelling the R8-billion motorsport and broadcasting contracts, and reviewing Gauteng Shared Services Centre - which has been accused of not paying suppliers on time - financial affairs have not improved.

Mike Moriarty, the DA Gauteng's spokesman for finance, said he suspected the real problem with the GSSC was a lack of authority over officials.

Last week, Mokonyane and all members of the Gauteng legislature, including opposition parties, voted to approach the National Treasury for a bailout, and this includes:

  • R539.1-million to fund "higher-than-budgeted-for" salaries brought about by the wage negotiations with the unions, to cover the 1.5% difference to meet the 6.8% wage demand from teachers and nurses;
  • A conditional grant of R87.7-million for infrastructure repairs following the floods in January and February; and
  • R19.1-million to the Gauteng department of health and social development to pay for stipends to caregivers.

Gauteng also approved a R553-million rollover from funds it failed to spend in the 2010/11 financial year.

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Gauteng asks National Treasury for bailout

For Commenters Consideration | Please stick to the subject matter

COMMENTS [19]

ooooooooo

Posted 536 days ago
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A few weeks ago when the DA warned of this imminent cash flow problem she denied it existed. She faild in the execution of her duties as Premier and should be fired forthwith. It is not going to happen though as there is no political will to run effective administrations.
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BornintheRSA

Posted 536 days ago
Denial is the way of the ANC. There will an excuse not to fire her for incompetence. Puts the whole City of JHB billing situation into context. Incompetent and unaccountable cadres in management.

Daffy

Posted 536 days ago
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provinces where the ANC rule will always be in debt, because they put their ANC positions first above good governance.

buddi

Posted 536 days ago
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Isn't it just amazing that it's never the fault of the managers. Always someone else's fault, while it smacks of mismanagement and poor planning. Why was the 6.8% increase such a huge surprise? These were negotiated, but as usual they budget for a smaller increase, knowing full well that in the end they are not going to get away with it.

Mnbvcxz0

Posted 536 days ago
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Gauteng is having the flu compared to Limpopo, Limpopo is in chronic pain because of various ailments. A doctor would hospitalise Limpopo and prescribe the harshest medicines. Fire someone! Do like the Communist Party of China, fire incompetent cadres. The wage increase in Gauteng is within inflation, this should not be a suprise.
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danny.archer1

Posted 536 days ago
"A doctor would hospitalise Limpopo and prescribe the harshest medicines."

And it would get medical parole thanks to the support of the ANC...
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RedCoat

Posted 536 days ago
@ Danny

Its terminal, no amount of medicine will work..........Euthanasia is the best option.

But given its terminal nature im sure your statement will be true.
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BobbyBob

Posted 536 days ago
"Fire someone" wont help if the problem is systemic and the result of incometence, indiscipline and graft.

The cadre deployment must stop.
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dougodurban

Posted 536 days ago
A large enema might do? Or laxatives? Either way, you get to clean out the fundamental orifices. And I think that in China they would probably be executing incompetent administrators like these.

danny.archer1

Posted 536 days ago
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Gauteng is going to be in the hands of the DA in 2014.
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BobbyBob

Posted 536 days ago
Imagine, an end to corruption, good governance, service delivery and maybe rates will even come down, when they've plugged all the loopholes....

Here's something to wish for!

BobbyBob

Posted 536 days ago
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Unless cadre deployment stops, endemic maladministration and corruption will continue. Be prepared for higher rates and taxes, lower disposable income, increasing job losses in the private sector and continuing deterioration of our cities. How do we get the DA in there to fix all this ?
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MsLee

Posted 536 days ago
Just something to bear in mind - our proportional representation system allows *all* parties to 'deploy' councillors that haven't been directly elected. Voters also have no say over the selection of candidates for election, and cannot hold councillors directly to account as they're responsible to their party caucuses, not the people. A change in administration might improve things, but there are no guarantees as long as there's a flawed system in place. We need to start thinking of putting a more accountable form of direct democracy into place ...

NeoBlack

Posted 536 days ago
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South Africans must raise their voices against incompetence and mal-administration. These cost the country millions of rands. We need to rethink the criteria we use to choose our leaders. Totally unacceptable.

zeldap1981

Posted 536 days ago
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As citizens , we can no longer sit back and "wait" for things to improve. We have to become active citizens that hold our government accountable. There is only one citizen-centric platform in SA that allows citizens to do this. Go and check it out mobilitate.co.za

zanek

Posted 536 days ago
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Thats the problem that we have as citizens we are to lazy to act and yet are quick to complain about it. If each and everyone of us took a stand and did something with the problems we have then we will deffinately be heard. I log all my issues and mobilitate and must say the feed back that I got was very fast and I was very impressed.

JacquesOlivier

Posted 536 days ago
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I fully agree with you StoneAngel - You should also make your voice heard on a website called Mobilitate i lately discovered. They are all about transparency and holding the government accountable.

Rightway

Posted 536 days ago
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No on will get fired. Hello! This is ANC ,run into the ground, South Africa. Incompetents and crooks are cared for, not booted out on their ear. You get the government you deserve and we deserve the ANC failures. We are not talking about rocket science. A ten year old can do better than the ANC.

MsLee

Posted 536 days ago
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The house of cards is collapsing ...