• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

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

 
 
 

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

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

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

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...