The Gauteng provincial government’s Operation Bhadala is now complete. Operation Bhadala was launched by Gauteng Premier Ms Nomvula Mokonyane as part of ensuring that the provincial government processed all outstanding invoices spanning the 2008/09 financial year up to June of the current financial year (2009/10).
As of 30 September 2009, R1,5 billion of the R1,7 billion had been processed. A war room led by the Gauteng Shared Service Centre was established by the Premier to implement the operation. The war room will continue to operate for at least another six months to ensure that the momentum is sustained.
A process has been set in motion to ensure that the provincial government consistently complies with the provisions of the Public Finance Management Act (PFMA) and the Broad-Based Black Economic Empowerment (BBBEE) strategy of ensuring that suppliers are paid within seven to 30 days of receipt of relevant documentation. This will also ensure that the “best practices in financial management” are implemented by all departments and entities of the provincial government.
Operation Bhadala has brought to the fore some important lessons for the provincial government. Amongst others, it has become apparent that the systems are not understood by all the end users. There is a tendency at times to disregard procurement rules by way of procuring goods without express approval from budget holders. This leads to the chronic delays in payments because services would be rendered and/or goods delivered without proper authorisation.
The remaining R200 million is being processed and we should complete this in the next week. Part of the reason we have not have processed the full amount relates to challenges around disputes between departments and their respective suppliers. In other instances, these may have arisen because the service has not been completed.
In terms of the bigger picture, part of the problem arises from the current economic environment which in part has seen our financial resources depleting rapidly. In the case of Gauteng, at least R60 billion that was allocated for the province as part of the adjustment process in the last financial year had to be redirected to, among others deal with the challenges of Eskom’s capacity to generate sufficient power supply.
The MEC of Finance Mr Mandla Nkomfe has expressed his satisfaction in the manner in which the operation has been carried. The MEC will in the near future make pronouncements with regard to initiatives the province has undertaken as part of cushioning the impact of the current global economic crisis.
For more information contact:
Khusela Sangoni
Tell: 011 689 8860
Cell: 079 510 5408
E-Mail: gsscmedia@gauteng.gov.za
Issued by: Gauteng Shared Services Centre, Gauteng Provincial Government
6 October 2009
Source: Gauteng Shared Services Centre (http://www.gssc.gpg.gov.za/)
