Remarks by the Premier of Limpopo, Chupu Stanley Mathabatha, during the Sitting with the National Council of Provinces (NCOP) on Limpopo Section 100 (1) (B) interventions, Cape Town
Chairperson of the National Council of Provinces (NCOP);
Honourable members of the NCOP ;
ECs from Limpopo present here;
Acting Director General and HoDs;
Limpopo Section 100 Administrators.
It is once again an honour and privilege, for us to appear before this NCOP Select Committee of Finance. As the Minister has already indicated, we are here give a detailed account and progress made since the intervention of Cabinet in Limpopo provincial government over the past four years.
This is so because the NCOP, through this committee, has played an important oversight role in ensuring compliance and successful implementation Section 100 of the Constitution in our province.
For that we are indeed grateful Chairperson.
When we appeared before this Committee on the 30th of July last year, we were in the process of singing the Memorandum of Agreement with the National Government following the Cabinet’s decision to convert Section 100 (1) (b) of the Constitution to Section 100 (1) (a).
The Cabinet had noted a significant progress made in the implementation Section 100 (1) (b) in Limpopo. As the provincial government were equally impressed, as we are today, that the situation has, indeed, been turned around.
Chairperson
As we meet here today, we have got no doubt that Limpopo is better place than it was before December 2011.
We have made significant inroads in the rebuilding of corporate governance of that province. Worth noting, honourable members, is the significant improvement we have made in terms of financial management systems in the provincial administration.
We have completely eliminated the R1.7 billion overdraft that was accumulated before December 2011, and more importantly, the reduced of R2.7 billion unauthorised expenditure. We can confidently say that Limpopo is back on a sound financial footing.
On the other hand, we have taken action against the officials who were found to have contravened the law. Disciplinary hearings are either underway or completed, whilst criminals cases have been opened for others.
We have, and continue, to restore and institutionalize the basic ethos of corporate governance in Limpopo provincial administration.
I have got no doubt that we have regained the support and confidence of the people of Limpopo into their government.
Chairperson,
Although intervention has greatly helped the province, it has, of course, not been without challenges and, in some cases, has had unintended consequences.
The verification of invoices and the realignment of procurement processes during the early stages of the intervention resulted in the material under-expenditure in respect of road maintenance and human settlement grants amongst others.
We also experienced a delay in the processing and finalization of the disciplinary cases. The cases have since been submitted to the provincial administration and we are looking forward to finalizing them.
Nevertheless, I happy to announce we have just finalized the cases of the three HoDs of the five who were suspended. The cases of one HoD and that of the Director-General should be finalized before the end of this quarter.
The irregular expenditure in the implementation of the National School Nutrition Programme, NSNP, in the provincial Department of Education is a course for great concern on my part.
Lack of clear guidelines on the relationship between section 100
(1) (b) line-function department Administrators and the Accounting Officers, has often resulted in the unnecessary confusion over accountability.
It is therefore against this background Chairperson, that as a measure of maintaining the gains we have made since the intervention, a team of HoDs led by the Director-General and HoD Provincial Treasury, is currently working with Section 100 (a) Administrators to ensure a continued monitoring and implementation of remedies in respect of all identified systemic challenges.
On the NSNP in particular, I have since directed the Acting MEC for Education, in consultation with Treasury to review the current model with the view to regularize and ensure sustainable, efficient and effective delivery and supply of food to schools. I expect this process to be finalised before the end of this month.
Honourables Members,
On the 15th of December 2014 we signed the Memorandum of Agreement with the national government as the Minister has said. This effectively marked the end of Section 100 (1) (b) and introduction of Section 100 (1) (a) intervention in Limpopo. The MECs of the affected departments have since assumed their full executive powers, whilst the accounting officer roles have reverted back to HODs.
In terms of this agreement, we have committed to finalize all other outstanding issues that include but not limited to:
- The strengthening of the chief financial officer (CFO) offices,
- The building of capacity for infrastructure development and delivery,
- The enhancement of records and contract management,
- The improvement of compliance with legislation, and response to litigation against the government
As the report by Section 100 Administrators will clearly indicate, we have covered enough ground in all these areas, and we remain with our eyes on the ball.
Chairperson, and Honourable members,
As I have said earlier on, we firmly believe that we have turned the corner.
We are ready to assume full executive and accounting responsibilities of all departments under administration without even the supervision of Section 100 (1) (a) Administrators.
We have the necessary capacity, requisite skills and clear-cut plan in place for the province to complete the remaining tasks.
Once more, I would like to take this opportunity to thank the Minister of Finance and his team for leadership provided the NCOP for the great oversight work, and Section 100 Administrators for the day-to-day management of the departments under administration.
Ke a leboga!
