Fin24

Spendthrift Limpopo faces R2bn shortfall

2012-01-19 12:01

Johannesburg - Limpopo faces a potential shortfall of R2bn at the end of the financial year, the ministry of finance said on Thursday.

"Why has this situation come about in Limpopo? The province has large, accumulated unauthorised expenditure which has grown from R1.5bn in 2009 to R2.7bn 2011," the ministry said.

The statement was released during a news briefing giving an update after the province was placed under administration in December.

The cabinet put the province under administration after it emerged that Limpopo was bankrupt and could not pay civil servants such as teachers and nurses.

In the department of health, the team found that:

  • The province owed suppliers R138m, but only half of these payments, R67m, could be verified and approved for payment by December 23;
  • R427m in assets had no supporting documents;
  • There was R400m in irregular expenditure of goods and services, mostly medical equipment.

Education Minister Angie Motshekga said in the province's education department there was no supply chain management, with the department not ordering pupil support material on time.

It accumulated unauthorised expenditure of R2.2bn and there was a R190m accrual of "stale debt" - money owed.

At least 200 "ghost" teachers were paid and there were 2 400 excess teachers in the province.

Certain schools had not received the money they needed in 2011 for basics such as electricity and photocopying.

 

Comments
  • Brendon Alberts - 2012-01-19 12:35

    Because its juju dilema's province...

  • Rob - 2012-01-19 12:49

    Put the DA in charge and let them sort it out. How much worse does it need to get for these idiots to figure out the cause of the problem?

  • dee-k - 2012-01-19 13:00

    not suprised at all.

  • Assis - 2012-01-19 13:49

    Pathetic...at this rate corruption will not take place any more as there is no more money left. I would love to know whats the excuses,running the Departments to the ground...I will be very surprised if anybody takes a fall for this mess.

  • Emil - 2012-01-19 13:51

    I suppose the current Limpopo government retain their well paid jobs whist the nonsence is being sorted out by central government, what a joke…… The consequence of cocking up……. No heads will roll …… what a mess

  • ludlowdj - 2012-01-19 14:07

    Whats the bet they will all get performance bonus's at the end of the year......unfortunately we all need to acknowledge that we are directly responsible for the corruption that is the ANC being in power and accept that we are the only ones who have the power to get rid of them once and for all.

  • Nkulekweni - 2012-01-19 14:08

    Ya ya ya ya. Shut the province down

  • Nyiko Ngobeni - 2012-01-19 15:26

    No suprises really. Which province doesn't have unauthorised expenditure? Maybe WC doesn't but the Anc ones do. Its how they make money from tenders. Watch this space, no heads will roll for this!

  • eradingoana - 2012-01-19 16:38

    This should not be a surprise. Limpopo is led by a bundle of hynaes, the Mafia Team who are just milking the government on their own personal tenders without projects.

  • Zab Juda - 2012-01-19 20:21

    It's free for all in Limpopo

  • ANC-FTL - 2012-01-20 10:19

    It purly the fault of the voters - if you vote for unaccoutabily and corruption thats what you get as simple as that.

  • Gierg Seiznem - 2012-01-20 11:52

    Interesting that this article comes in the same week as the story about Limpopo "going ahead with nationalisation" (obviously, it's not really nationalisation, but it does provide a useful example of how nationalisation worsens fiscal positions i.e. SOEs become drains on revenues that could be used for social programmes - one of a number of problems)

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