Speakers notes for Limpopo Premier Chupu Mathabatha during the Exco Budget Lekgotla at The Ranch Hotel
Program Director MEC’s
Executive Mayors and Mayors Speakers and Chief Whips Councilors
The Acting Director General Heads of Departments
CEOs and Heads of our State Owned entities Representatives of Traditional Leaders CFOs
Ladies and gentlemen
Program Director
The mandates of this government are very clear as dictated by the people of Limpopo when they voted us into power. In their own eyes, they see us fighting the triple challenges of South Africa, and these are; unemployment, poverty, and inequality. How we do it, they don’t want to know, but they want it done.
As I stand here this morning, I almost feel like a prophet of doom, a bearer of bad news. Why? Because the economy of South Africa is not performing well, and we have to be realistic about that. We avoided a recession by a whisker this past week.
We all know that our electricity grid almost collapsed and we faced load shedding almost every day since the dawn of this year. When we finally found our combination and had one of our own sons running Eskom, then disaster struck, drought!
We are stuck with this one, because we have no idea who to replace in heaven so that it could start raining again?
The outlook in a rural province like ours is not good. We produce more than 78% of citrus fruits and are the biggest producers of tomatoes in the country. Now , if all these products are as low in production because of drought as they are, in the economics of supply and demands it means prices will go up. When they go up they affect everything and it means more poverty for our people.
One of the harshest realities is that we may also experience laying away of workers in the farming industry.
Program Director
Every year after the Medium Term Appropriation Bill, the Executive and all of you come together and follow a ritual of finding out how much we have, and how much we don’t have, and how we want to spend the little we have equitably.
In simple terms, as an economist, I would say this is where the laws of demand and supply are applied in full force. Rational people would often make decisions by comparing marginal benefits and marginal costs.
The first time we gathered as a new Executive was in November 2013. By then our then MEC for Treasury, Cde Rudolph Phala was at pains to explain that the Provincial administration had by 2011 accumulated an unauthorized expenditure of R2,9billion and an overdraft of R1,7billion.
Of course by the time the Medium Term expenditure was read, the positive bank balance had grown to about R4,2billion. Which at the time was a success.
Program Director
All what I have painted above would not amount to anything in today’s terms. Things have changed. We cannot as a government be excited when we still accumulate overdrafts of over R500million! Perhaps our CFOs should explain to us which healthy overdraft would be tolerable, if there’s any.
As a government, we have a responsibility to improve and influence market outcomes. There are two broad reasons for the government to interfere with the economy; the promotion of efficiency and equity.
I will not go into details and the technicalities of government’s interventions, suffice to leave it in the hands of the MEC for Treasury, Cde Rob Tooley.
Mine is to lead all of us into finding solutions in addressing what we promised the people of Limpopo that we would do. Mine is to emphasize that we should find ways together in addressing the unemployment rate, which has now shot through the roof.
We dare not fail on that.
Program Director
I have met with almost all of you since the beginning of the year, sometimes immediately after meeting with the Auditor General, and at most together with the Auditor General. There are quite a number of issues that the Auditor General raised with me and always with you.
- Lack of leadership
- Lack of accountability
- Disregard of basic rules and sometimes
- Just plain ignorance
In most of these issues, we also found that in most of our municipalities there is a scary vacancy rate especially of CFOs and accounting officers.
Now the basic rule is that if you are the Manager or leader of an organization and you don’t have somebody to look after your monies, you are going to do it yourself, and will definitely do it wrongly. That’s what is happening.
We all have an idea of what happened in the past four years in the Province. That situation of 2011 cannot unfortunately be allowed to repeat itself. Otherwise we will never forgive ourselves.
Program Director
The Minister of Finance has announced several measures of belt tightening through the spectrum. Those who have been in government for a long time will know that these type of measures have been applied before and it worked.
As Limpopo we know we have been on that road of belt tightening even before it was announced. We will continue to do with the little we have until the situation improves.
However, I urge all of you to continue providing basic services like water, roads and sanitation to our people. The water restrictions measure will continue until we find a permanent solution.
Those in farming should consider culling their stock. If you have 100 cows, you should consider letting go of 50 so that you could be able to feed the remainder.
Program Director
I wish to send my heartfelt sympathies to those whose properties were destroyed by storms in the past few days. The Disaster management services is dealing with this issue in the best possible way they can. As we do, I implore for patience, because it is easy to blow up when you think help is not fast enough.
We are advised by the Weather Bureau that we should expect more storms and more drought as the year dawns. For us, it is to keep vigilant and alert but communicating with relevant structures and councilors on the ground.
I hope and believe we will leave this Budget lekgotla with more solutions than problems and challenges.
