Share

Spendthrift Limpopo faces R2bn shortfall

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.

 
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
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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