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Sat May 26 14:09:59 SAST 2012

'Dirty tricks' muddy Limpopo finances

SIPHO MASONDO | 20 January, 2012 00:08
Pravin Gordhan. File photo. Picture: SHELLEY CHRISTIANS

Finance Minister Pravin Gordhan yesterday announced major interventions - specialised courts and forensic investigations - to clean up the rot in Limpopo.

This comes barely six weeks after President Jacob Zuma announced central government involvement in five provinces whose finances were in serious disarray.

Speaking at a media briefing in Polokwane, Gordhan accused some in the Limpopo government of "sabotage" after service providers were told not to honour their contracts because they might not be paid.

Gordhan said forensic investigations would start next week to deal with the financial mess.

Limpopo's finances have deteriorated to the extent that at one point the province was almost unable to pay its entire workforce.

Gordhan said "national government had to take emergency measures towards the end of 2011 because, technically, the Limpopo province was bankrupt.

"On November 22 it became clear that the province would not be able to pay teachers, doctors, nurses, social workers, service providers and other public-sector employees. The province has been spending beyond its means. This has to stop."

Gordhan revealed that:

  • Limpopo will end the current financial year with a R2-billion shortfall;
  • The province's dismal financial state is the result of unauthorised expenditure, which grew from R1.5-billion in 2009 to R2.7-billion in 2011;
  • Accruals from unpaid service providers grew to about R500-million by the end of March 2011;
  • The province had wiped out its overdraft of R757-million in November and was asking the Treasury to increase it to R1.77-billion;
  • Some service providers were being paid eight times in one month; and
  • On many occasions payment was demanded without supporting documentation, such as invoices and contracts.

Gordhan said the Treasury refused the province's request, saying "unless urgent action is taken by the province to address these issues the Limpopo treasury is likely to preside over serious failure of public systems and process for service delivery".

The intervention team, said Gordhan, has also uncovered evidence that service delivery in the province was sabotaged so as to lay the blame at the door of national government administrators.

"There is sufficient evidence that service delivery was sabotaged in order to blame non-delivery on the national intervention."

He said this after reports that service providers refused to deliver food to hospitals, saying they had heard that the provincial government would not pay them.

Gordhan, however, would not identify those responsible for the breakdown of services.

Gordhan's intervention has in recent weeks been labelled a "political plot" to undermine Limpopo ANC members opposed to Zuma's leadership.

Gordhan said: "I can't manufacture these things; facts have spoken for themselves.

"The facts will continue to speak for themselves in coming months.

"Let the public be the judge. I have no time for politics in this."

The minister said that though he was happy with Limpopo Premier Cassel Mathale's cooperation, he was concerned about the resistance of some members of his executive committee.

The National Council of Provinces is entitled to review the intervention in six months, said Gordhan.

"For now, we will be here for as long as it will take."

Mathale said yesterday that his administration will cooperate with Gordhan.

The DA and trade union federation Cosatu welcomed Gordhan's intervention yesterday.

But DA MP James Lorimer questioned why the Treasury had delayed taking action when R1.5-billion of unauthorised expenditure was identified in Limpopo as far back as 2009.

"This inaction has led to the complete collapse of Limpopo's public service infrastructure. This should be a lesson to the government."

Cosatu spokesman Patrick Craven said action taken against the Limpopo administration "will set a precedent".

"If evidence exists in other parts of the country, similar action will have to be applied," Craven said.

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ooooooooo

Posted 127 days ago
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Economic freedom working at its best for Malema and cronies. Why has the premier and all the relevant MEC's not been fired. The ANC rewards mediocrity and applaud corruption.
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ChickenRunner

Posted 126 days ago
All the the Provinces have the same issue including Government departments. Honest auditing is non-existent - would not be surprised to find that the ANC and their greed, lack of management and ongoing nepotism has finally bankrupted South Africa. The only thing saving us is the fact that nobody has awoken to this fact and it can only be hidden for so long - perhaps after the elections the truth will surface. We're really dumsh!ts for sure....
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v_3

Posted 126 days ago
The fact that this crisis-what-crisis "challenge" has been allowed to fester for so long makes one wonder why Luthuli House puppet Gordhan has waited so long, waited until it suited Zuma's faction in the ANC's internal power struggle. Gordhan is an old Jacob 783 comrade from "Struggle" days.

His intervention smacks of the sort of dirty tricks the ANC tried in the Western Cape (to be outmanoeuvred by Zille running a clean province and using the courts). It also begs the question why other dysfunctional provinces (Eastern Cape), state departments (education, health, police, pensions, sport, defence, etc. etc) or state owned enterprises that are not run by Malema loyalists are left to maladminister and plunder on in best "whatever the ANC runs it ruins" style.

Johnfpro

Posted 127 days ago
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The folk in the area voted these buffoons into power, live with the consequences.

Let the DA run the province for 5 years and see if there's a difference.....
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BornintheRSA

Posted 127 days ago
Aah but you forget so soon. Those poor folk were able to savour the champagne through the lips of some of these very same buffoons............. Surely that's a reason to vote for them next time.

BornintheRSA

Posted 127 days ago
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Bravo to Pravin. Not for identifying the problem, that should have been done long ago. Well done for having the guts to take action.
The province's management should all be fired (not suspended) as there is evidence of maladministration. I think in other countries, this would be termed treason and carry the maximum benefit.

the_original_MommaCyndi

Posted 127 days ago
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A political plot or not. Makes no difference to the people of Limpopo. The money is squandered regardless. Even if it is a political plot, something is being done - at last.
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buddi

Posted 127 days ago
Agree wholeheartedly. Heads must roll, starting with the premier, who reckons that there is no reason for him to resign.
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ooooooooo

Posted 127 days ago
Two billion squandered can hardly be called a political plot. It is sheer negligence and incompetence.

Mpimpi1

Posted 127 days ago
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While at it, Praviv should have a look at the R20billion reportedly mismanaged through corrupt and other illegal practices including in Zumas' office. Limpopo is but a tip of the Iceberg. If Gordhan is serious, he should do the same in all government departments implicated in the Auditor General reports. Otherwise, it will be construed as an attempt by Gordhan's office to destabilize Limpopo which is a stronghold of ANCYL seeking to replace Zuma

PPP

Posted 127 days ago
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This was suppose to have been done longtime ago, it did not happen because ANC was in love with the corrupt Elite (Mathale aka Malema).Limpopo people honour these corrupt Elite they all drive big cars and given an utmost cheers and respect when passing while the poor are suffering even worse than Apartheid times. Mathale will always win ANC leadership in Limpopo because his cronies are more in the ANC Limpopo.

cozib5

Posted 127 days ago
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Start with the Premier. This apple is rotten to the core!
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ChickenRunner

Posted 126 days ago
This can be likened to the Costa Concordia cruise ship that ran aground - the Captain said that he had tried to help but he tripped and fell into the lifeboat - not his fault as he watched the rescue from dry land. The ship has sunk people and our Captain Zuma does not have a clue...
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v_3

Posted 126 days ago
You're close, but "fish rots from the head".

Start with President 783 and work the way down, including ALL the premiers, including Zille. Those who are doing a good job and have nothing to hide have nothing to fear.

Another good place to start are Luthuli and Chancellor Houses.

Mike123

Posted 127 days ago
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If you put a 5 year old in charge of a sweet shop, what more would you expect?

Burkyz_2012

Posted 127 days ago
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juju is to blame...period...Limpopo has been run like a farm...

Ultimatum-1

Posted 127 days ago
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Malema, I'm sorry but this is your fault.

Loggenberg

Posted 127 days ago
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Even after the departments has been put under administration, the same "faulty" people in ANC Office still vote for the same cadres.

And we expect people in rural Limpopo to remove the people who rob and steal from them?

Most people in South Africa are so happy being free that being hungry does not bother them.

Mercenary

Posted 127 days ago
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Umm is this whole mess not National Treasury's fault? LP Provincial Treasury reports to National don't it, this mess was a long time coming it should have been picked up and sorted out earlier.

BokFan

Posted 127 days ago
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Go read the Yob League's attack on National Governot at politicsweb-co-za

In that statement they point out that Limpo.eps is being unfairly targeted because of the Fatboy and his friends. They defend themselves and the provincial gang by pointing out that although Limpo.eps is cr+p a lot of other anc provinces are just as cr+p if not cr+pper. Clearly Yobbers are now masters at determining the absolute degree of uselessness you should achieve before being held to account.

Nice one anc.

Wiseguy

Posted 127 days ago
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Hmmmm, one wonders where did all "the people's" money go to.....?

Let's hope the Asset forfeit unit is hot on the heals of this one!
2 Billion of the people's money.....into where?

Follow the money trail and brings those responsible to book......these corrupt cardes will ONLY learn by example. So make some.....please, for the sake of the people!

No political solutions should be allowed.
Find the guilty and bring them to book.....every single one of them.

VUKA ABANTU VUKA
PHANSI CORRUPT POLITICIANS PHANSI!!!!!!!!!!!!!!!!!

Wiseguy

Posted 127 days ago
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That is:
R2 000 000 000.00
for those who r unsure!!!!

That is a LOT of moola in anyones book, how proud Uncle Mad Bob Mugabarge must be of his boys!!

Abdulla-Saleeh

Posted 127 days ago
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Gordhan revealed that:

■Limpopo will end the current financial year with a R2-billion shortfall;
■The province's dismal financial state is the result of unauthorised expenditure, which grew from R1.5-billion in 2009 to R2.7-billion in 2011;
■Accruals from unpaid service providers grew to about R500-million by the end of March 2011;
■The province had wiped out its overdraft of R757-million in November and was asking the Treasury to increase it to R1.77-billion;
■Some service providers were being paid eight times in one month; and
■On many occasions payment was demanded without supporting documentation, such as invoices and contracts.



You found out about this in 2011 at the latest, what did you do about it mister? Stop playing politics and do your job. You never had any credibility because you were just another zoomer appointment. You will do as your master tells you. This mess could have been avoided if you were doing your job.
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bis-k'hallawaya

Posted 127 days ago
"""Why did the National Treasury remain silent when R1.5 billion worth of unauthorized expenditure was identified in Limpopo as early as 2009?""""

....at that time Malema was prepared to dye for Zuma, and Castle Mathale and the rest were honest cadres to the eyes of Zuma.............No need to stir a wasps nest..........
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TheodorTonsing

Posted 127 days ago
You are so correct Abdulla - Saleeh. The job of the finance department is simply to disburse? No questions asked? This is certainly what is implied in this article. Ask and you shall be given?
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BokFan

Posted 126 days ago
Geez dude that is the most distressing icon I have ever seen. Is that you idea of a joke or are you really psychotic.

bis-k'hallawaya

Posted 127 days ago
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(Editor Goldberg, 'wisely' as usual, deleted my comment)

Mr Gordhan, impresses as someone who knows what he is doing (This kind of people is noticeable by default among the sea of useless but ambitious cadres).......But what weight do his opinions and judgements and measures carry?.......This very moment I am listening on the radio the statements by 'Castle' Mathale blaming his woes on the service providers.......

When Gordhan advocates strict fiscal discipline, it means "Let's 'frenching' spend some more" to Zuma and down the scale of ANC elite creeps........Mr Zuma/ANC want to buy an AIRCRAFT CARRIER ??????......Does the ANC want to attract unemployed youths by opening a Kamikaze Training School ???????.....
And the ANCYL is blaming the government for placing the bankrupt province under administration, and threatening with another "march to Pretoria"...........
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Abdulla-Saleeh

Posted 127 days ago
Let them walk from Polokwane to Pretoria.

wetpaint

Posted 127 days ago
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"■On many occasions payment was demanded without supporting documentation, such as invoices and contracts."

Make's you wonder............Who isfunding the biulding of Malema's mansion.........I smell a rat here.

Ndlwananhle-kayi-1

Posted 127 days ago
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Is this not being decisive by the National Cabinet under the leadership of His Excellency, President of the Republic of South, Africa, Mr. JGM Zuma?
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bis-k'hallawaya

Posted 126 days ago
......The decisiveness of His majestic majesty Zuma was very prompt since 2009 when this was noticed......But by then Malema, Castle Mathale and cohort were ready to 'dye' for Zuma........

His decisiveness was even faster for the construction of his palace in the greenfields of Nkandla:
"After initially refusing to comment, the department of public works said it was spending R36-million on security related construction. Government and ANC sources have put the total budget at between R69-million and R400-million"...........

FreeSpeech

Posted 126 days ago
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Malema's dodgy tenders took a large chunk of that!

zuluxtreme.richards-bay

Posted 126 days ago
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As is the case with this puppet government... 'They' first make sure all their friends, uncles and aunties, cousins, brothers and sisters have raped the system and filled their banking accounts before there is suddenly a so called investigation. Lets not even mention the amount of lazy, useless so called politicians and governments employees getting paid vast sums of money while being on suspension, sometimes for years on end.. What happened to lifting up the community??? All lies, all talk from snakes. The ANC is privately funding a select few on the backs of hard working average (poor) South Africans, just look at what 'they' did with Hitachi. The reason our puppet government goes to all these summits and meetings abroad is to learn of all the ways they can cheat, steal and finance their hedonisitc, greedy life styles while we the obedient slaves just pay, pay, pay... The ANC had better look at history, slaves will only take this for a while, eventually they will have had enough!!!

RealAfricanDemocrat

Posted 126 days ago
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I am still wondering whether this whole episode is not just about Jacob Zuma trying to put Cassel Mathale in his place. After all the delegates at the ANC provincial conference were singing derogatory songs about Showerhead. It was not long after the conference that Mathale was saying that Jacob Zuma should just charge instead of making threats against him. Jacob Zuma should know by now that if the Supreme Court of Appeal decides to reinstate his fraud and corruption charges, very few people will be coming out to support him. This time he will be on his own and the law will be allowed to take its course. The Mathale episode may well turn out to be a mere sideshow.
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ooooooooo

Posted 126 days ago
So what about the 2billion shortfall. This can never be called a sideshow. It demonstrates mal administration at its worst. Forget the conspiracy theories. The ANC leadership is incapable to manage and lead.