The Provincial Departments of Health, Public Works and Roads as well as Education and Sports Development will for the next 18 months have their financial affairs co-managed by Provincial Treasury.
This follows years of financial instabilities and general mismanagement of budgets leading to amongst others the inability by these departments to pay creditors and accumulation of unmanageable accruals which have negatively affected the financial positions of the departments.
The decision to place these key departments under administration was announced by the Premier of Bokone Bophirima Mr Supra Obakeng Ramoeletsi Mahumapelo following a special meeting held in Matlosana over the weekend.
This means that the Provincial Treasury will in line with EXCO decision ensure that the financial position of the three departments is stabilised, and that capacity is deployed to ensure that day to day financial management and decisions are done within provisions of the Public Finance Management Act.
The intervention also entails undertaking a thorough audit of the financial skills and qualifications of all personnel appointed to run finances of the affected departments.
“It is the Provincial Government’s considered view that this decision was well timed, noting that the new financial year has just started”, remarked Premier Mahumapelo who insisted that proper financial management systems will be put in place to ensure that these departments recover”.
Premier Mahumapelo assured the public that there will be no interruption of services to the public as a result of this intervention. Measures have been put in place to ensure that the three departments comply with the Premier’s vision of ensuring that 60% of their respective Budgets are spent in Villages, Townships and Small Dorpies (VTSD) as part of the intervention to fight unemployment, poverty and inequality.
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SOURCE: South African Official News