Data provided by iNet BFA
Loading...
See More

Gordhan: Limpopo needs credible budgets

Jan 10 2012 22:00 Sapa

Related Articles

Province intervention 'necessary'

Govt clamps down on profligate provinces

Limpopo premier probed for tender fraud

Indian coal giant buys SA rights

Lonmin eyes Limpopo deal with Shanduka

Premier's wife mine closed

 
Cape Town - The priority for state intervention in Limpopo is to draw up a credible budget for certain departments, Finance Minister Pravin Gordhan said on Tuesday.

"We agreed today (Tuesday) that the most pressing priority is to present a credible budget in the province within the legal timeframe," he said following a meeting with provincial premier Cassel Mathale.

"Finances of the province need to be stabilised and (we must) ensure the payment of service providers with legitimate claims."

Cabinet decided at the beginning of December to take over the running of five Limpopo departments, and to intervene in some Gauteng and Free State departments as well.

At the time, Gordhan said the intervention was due to underspending, overspending and violation of supply chain provisions. He said it was important that a team of officials was put in place immediately to ensure proper systems and controls were implemented, while a forensic investigation took place.

Intervention in the Limpopo provincial government would take place according to section 100(1)(b) of the constitution, meaning that a national minister would take over department functions.

"We recognise the importance of key service delivery programmes in departments such as education and health," Gordhan said.

"The authenticity of contracts and payments of these essential services will be prioritised and legitimate service providers will be paid."

Gordhan added that payment to all providers would depend on whether enough money was available.
pravin gordhan  |  limpopo  |  national treasury  |  budgets
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...