Share

Govt clamps down on profligate provinces

Johannesburg - Central government took direct control of parts of several provincial administrations on Monday in a clampdown on profligate spending, and to try to iron out long-running problems with shoddy public services.

A cabinet statement said Pretoria had assumed authority over nearly every area of administration in troubled Limpopo province after it asked for a R1bn overdraft to pay civil servants' salaries.

Limpopo, the home of controversial ANC Youth League leader Julius Malema, has been plagued by allegations of mismanagement and corruption, especially in the award of government contracts.

Finance Minister Pravin Gordhan, who is under pressure to keep public spending in check, said his department had been concerned for several months about "financial management and the potential for overspending".

"We owe it to taxpayers of this country to ensure that their money is spent well and that there will be proper returns," he told Talk Radio 702.

Under the terms of the takeover, the central government will assume direct control of Limpopo's finances, as well as the education, transport, health and public works departments.

It will investigate alleged corruption and maladministration, Gordhan said.

Pretoria has also stepped in to oversee the finances and police and transport sections of the Free State, and will help sort out a funding crisis in Johannesburg's health sector.

Since the end of apartheid in 1994, the ANC government has spent billions of dollars to improve public services for the millions of blacks largely ignored under white-minority rule.

However, its efforts have been hampered by corruption and a lack of qualified officials at the provincial and municipal levels - especially since many bureaucrats were replaced after the 1994 election that brought the ANC to power.

Last month Moody's cut its outlook for South Africa's A3 credit rating, voicing concern that pressure from unions and black voters wanting greater economic redress for the ills of apartheid would put pressure on the budget.

In October's long-term budget outlook, the Treasury said the deficit this year would be higher than previously forecast, at 5.5% of gross domestic product. 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
+0.0%
Rand - Pound
23.64
-0.1%
Rand - Euro
20.20
-0.2%
Rand - Aus dollar
12.18
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
978.70
+0.3%
Palladium
1,008.00
-1.5%
Gold
2,373.48
-0.4%
Silver
28.30
-2.0%
Brent Crude
90.10
-0.4%
Top 40
66,955
-2.0%
All Share
73,070
-1.9%
Resource 10
61,730
-3.4%
Industrial 25
98,409
-1.7%
Financial 15
15,652
-1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders