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Limpopo faces R2billion shortfall 

By Sapa | Jan 19, 2012 | COMMENTS [ 129 ]

Limpopo faces a potential shortfall of R2 billion 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 in a statement.

   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.

   The team found that, in the health department:

   — the province owed suppliers R138 million, but only half 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 that 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 2400 excess teachers in the province.

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

   Public Works Minister Thulas Nxesi said the modification of existing contracts to push up tender values and consultancy fees contributed to the financial crisis,    “A security contract of R1.8m a month — and I am not saying a year — a month — was extended without proper procedures from 2010,” Nxesi said at the briefing.

   He said supply chain violations, tenders awarded without proper processes and no asset management were also found.

   “We cannot run government like this,” he said.

   Transport Minister Sbu Ndebele said there was no contract management system in place in the province’s transport department.

   There was also no oversight of the Limpopo Roads Agency.

   Public Service Minister Roy Padayachee said the security of the public service was critical. If public servants were not paid, public services could not be delivered.

   On November 22, it was discovered that Polokwane could not pay its civil servants.

COMMENTS [ 129 ]

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dre10

Therein lies the problem. It normally is internal. It would be just as easy to crack the payment generation system.

I'm not too sure the Post Office one was internal though. The system was pretty weak by the sounds of things and if people can hack into places like the Pentagon (with all their paranoia) then hacking into the PO should be a piece of cake.

Jan 19, 2012 1:36 | 0 replies

All this and yet Mathale and his cronies moan that placing those Limpopo departments under administration is a political ploy. #Not that the national government is doing better#

Jan 19, 2012 1:54 | 0 replies

A province being run like s*hop ya masonja!

Julius = Wood work teacher, i wont be suprised

Jan 19, 2012 1:55 | 0 replies

lilydo
@Into Enje,domkop,think ,think damnit,do you really think malema went to all departments and sign cheques?all office have their finance department they are to be blamed, its so stupid to think Malema did all that,open your eyes .this is real life,think.and think,hating him i know you do,but blaming him for things he ddnt know,really?unneccesary.
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Its malema and Mathale's influence, they hire their lazy and incompetent cadres, cousins, brothers and galfrends.....think, think, think what? bulshyte?

Jan 19, 2012 1:56 | 0 replies

MommaC
dre10

I am a bit of a Luddite so I'll take your word for it.
Maybe we need to get rid of the incompetence before we can even find the corruption
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that is a good point.

Jan 19, 2012 1:57 | 0 replies

@Dre10 I think we need competent/qualified ppl working with these systems, let us assume this computer generated order/payment system you are suggesting, in the hands of an incompetent it will be useless,

the other day I read here that SARR is the most competent dept in SA, to my horror I am waiting for almost 4moths for them to print out a tax clearance certificate, the argument is that original docs were registered in JHB, so I am wondering what's that got to do with anything, in this world technology? so I come to teh concl they are incompetent, it is incompetent that a renewal of a passport and id takes 3 months for the info that is already in the database, do you understand what I am trying to say?

Jan 19, 2012 1:58 | 0 replies

Into_Enje!

if u feel boyish or 13 please bow out of this forum, we are discussing adult issues here.

Jan 19, 2012 1:58 | 0 replies

dre10
1tsotsi

i work in the E. Cape and things are bad.
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True that, coz lazy morons like you are messing everything up. Do some work instead of commenting on Sowetan.

Jan 19, 2012 1:59 | 0 replies

Limpopo is not the only province facing financial crisis.
EC, FS and Gauteng are in financial crisis.
KZN were also in the same crisis but some1, somewhere bail them out??? I wonder
It is a political move 4 the Showara Fornicator.

Jan 19, 2012 2:1 | 0 replies

PleaseGetReal

I don't see the fat cats sharing, I see fat cats getting fatter and fatter while others is starving more and more
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arent you blind sir?cos you just confirmed that you dont see anything?chief we are sharing take my preciouse word for it! i know it might not be enuf but is the trueth

Jan 19, 2012 2:2 | 0 replies

somaartakeit

yes i understand. But the system i am talking about is so simple that even a recently matriculated pupil can work on it. What i like about it is the segregation of duties as well being able to tell which user id was being to do what, at which computer.

Jan 19, 2012 2:3 | 0 replies