Loading...
See More

Spendthrift Limpopo faces R2bn shortfall

Jan 19 2012 12:01 Sapa

Related Articles

Limpopo premier probed for tender fraud

Limpopo goes it alone on nationalisation

Concourt rules on Limpopo finance law

Province intervention 'necessary'

Govt clamps down on profligate provinces

Gordhan: Limpopo needs credible budgets

 

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.

 
limpopo  |  education
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

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
12 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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