Pretoria: The North West provincial government has placed three provincial departments under administration following years of financial instability and general mismanagement of budgets.
The 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.
The financial instability has led to, among others, the inability by these departments to pay creditors and the accumulation of unmanageable accruals which have negatively affected the financial position of the departments.
North West Premier Supra Mahumapelo made the announcement to place the three departments under administration following a special meeting held in Matlosana over the weekend.
Premier Mahumapelo said the provincial government considered the decision as well timed, given that the new financial year has just started.
He said proper financial management systems will now be put in place to ensure that the departments recover.
He also assured the public that there will be no interruption of services to them 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 as part of the intervention to fight unemployment, poverty and inequality.
“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,” said the Premier.
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.
SOURCE: South African Official News