'Dirty tricks' muddy Limpopo finances
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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Posted 127 days agoChickenRunner
v_3
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 agoLet the DA run the province for 5 years and see if there's a difference.....
BornintheRSA
BornintheRSA
Posted 127 days agoThe 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 agobuddi
ooooooooo
Mpimpi1
Posted 127 days agoPPP
Posted 127 days agocozib5
Posted 127 days agoChickenRunner
v_3
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 agoBurkyz_2012
Posted 127 days agoUltimatum-1
Posted 127 days agoLoggenberg
Posted 127 days agoAnd 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 agoBokFan
Posted 127 days agoIn 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 agoLet'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 agoR2 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■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.
bis-k'hallawaya
....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..........
TheodorTonsing
BokFan
bis-k'hallawaya
Posted 127 days agoMr 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"...........
Abdulla-Saleeh
wetpaint
Posted 127 days agoMake's you wonder............Who isfunding the biulding of Malema's mansion.........I smell a rat here.
Ndlwananhle-kayi-1
Posted 127 days agobis-k'hallawaya
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 agozuluxtreme.richards-bay
Posted 126 days agoRealAfricanDemocrat
Posted 126 days agoooooooooo