Today we tabled the inaugural budget vote for the Gauteng Department of Finance. We have highlighted the extensive work done to establish a solid institution that is positioned to deliver on the critical outcomes adopted by the Executive Council. These have been further expressed through the Medium Term Strategic Framework and the Programme of Action of Government.
The merging of the Shared Services and the Treasury Departments was informed by the need to consolidate and coordinate the management of the resources of the province being financial, human and infrastructure and assets.
The Gauteng Funding Agency will serve as our catalyst for raising alternative revenue sources in order to address challenges relating to the infrastructure backlogs currently faced by Gauteng. Our challenges stem from the rapid urbanisation propelled by sustained by the longest rate of economic growth in many years.
In tabling our budget vote, outlining the programmes we are going to undertake for the financial year 2010/11; we have adopted an outcomes based approach. The department receives R1.4 billion for the current financial year.
Whist the Executive Council has adopted seven outcomes to guide our work and are steadfast in our support in giving effect to all of them; we have identified four that are in our direct realm of influence.
Strengthening the developmental state and good governance
The focus here will be on the integration of our procurement and finance systems to ensure that departments focus on improving demand planning, procurement process and aid in the speedy payment of suppliers.
We have taken a view that an activist, interventionist department that we seek to build must have a view of the work of the departments to whom we provide support. We have pronounced on measures that must be undertaken to ensure that among others we better manage the financial resources of the province through budget blocking, stricter enforcement of the financial regulations to ensure that departments comply with procurement policies.
This will require that Chief Financial Officers themselves become activists who play the role of strategic advisor for the departments, monitor the financial position of the department and ensure that delivery imperatives are being met.
Intensifying the fight against crime and corruption
We have now revised the Gauteng Anti–Corruption Strategic Framework and we have identified significant weaknesses that we believe require partnership and a concerted effort by government, civil society and business.
Among others we have flagged the following issues:
* Lack of cooperation with sectors such as business and civil society
* Lack of investigative capacity including no dedicated personnel to manage anti-corruption in some departments
* Lack of guidelines for sentencing civil cases of corruption
* Blacklisting of businesses and individuals charged with corruption
* No Provincial Policy or protocol on financial disclosures
We are of the view that a strong partnership can be built around these issues if our initiative to tackle corruption are to work effectively.
There is a strong commitment politically to deal with the scourge of corruption. We have in place an Anti-Corruption forum convened and chaired by the office of the premier.
All our departments have in place fraud prevention plans. We have trained 24 Ethics officers across the province.
One of the key considerations we are making is the possibility of the appointment of the Public Service Integrity Commissioner along the same lines as those of the commissioner who administers matters of ethical conduct on the part of the members of the Legislature.
Creating decent work and building a growing, inclusive economy
The matter of the review of the procurement policies is underpinned by the need to ensure that the state plays an active role in expanding the frontiers of opportunity for the SMME sector.
At the same time the state must contribute to the creation of sustainable job opportunities that also provide for the improved quality of life among communities.
We have taken a conscious decision to implement among others a rotational system in selecting service providers. This we have done through the reorganisation of the provincial government’s database of suppliers by grouping them in terms of commodities, regions and the capacity to deliver at least on those requests that are below 500 thousand rand.
Effective local governments
In our recent meeting with the members of mayoral committees responsible for finances in the municipalities, we raised our concern at the possibility of pressures that may arise as a result of the hike in the price of electricity.
We are of the view that such pressures may lead to the need for the electricity revenue to be redirected in order to sustain the development of infrastructure and the delivery of other social services.
In the context of these observations Premier Mokonyane did announce during the state of the province address that Gauteng required in excess of 34 billion rand to meet its infrastructure requirements.
We are finalising plans through the Gauteng Funding Agency to raise at least a shortfall of about 20 billion rand through the private sector.
We are placing greater emphasis on the need to plan better, coordinate our efforts so that through these we achieve greater social impact and ensure that local government is especially better capacitated to deal with challenges of delivery.
Enquiries:
Khusela Sangoni
Cell: 079 510 5408
E-mail: Khusela.sangoni@gauteng.gov.za
Issued by: Department of Finance, Gauteng Provincial Government
28 May 2010
