Desiree van der Walt
DA Limpopo Legislature Caucus Leader
The financial management of the Limpopo Education and Health departments has become even worse in the last year, despite being placed under administration by national treasury in 2011.
The latest round of annual reports show that irregular expenditure, fruitless and wasteful expenditure and underspending of budgets has unfortunately increased in the last year. This is not acceptable as it is hampering the departments’ ability to deliver important services to the people of Limpopo.
I have written to the Minister of Finance today, Pravin Gordhan, to request an explanation. Minister Gordhan must come to the Provincial Legislature to give a full explanation of how things are progressing with his department’s intervention into our provincial government. These statistics indicate that it is not going well.
The table below shows how the Health and Education departments have gotten worse in the last year:
|Fruitless and Waste Expenditure||2011/2012||2012/2013|
|Education||R95 million||R106 million|
|Health||R 7 million||R10 million|
|Education||R162 million||R 99 million|
|Health||R73 million||R718 million|
|Education||R81 million||R 1000 million|
|Health||R305 million||R 0|
This is also not the full story. The annual reports reveal a number of problems in the other departments that have been placed under administration as well.
- Public Works under-spent by R95 million in 2012/2013.
- Irregular expenditure by Roads and Transport was R1 billion in 2011/12 and this was followed by R443 million under-expenditure in 2012/13 as our provincial roads remain un-tarred.
- Unauthorised expenditure by the department of health is R222 million for 2012/2013 financial year.
These are deeply worrying outcomes, and brings National Treasury’s ability to fix the Limpopo management crisis into question. The Minister must come to our Legislature to answer some difficult questions.