ANC Party Caucus applauds placing of Provincial Administration under Section 100
The African National Congress (ANC) Party Caucus of the Limpopo Legislature met to discuss numerous matters including the placing of the Provincial Administration under Section 100 by the National Cabinet. The ANC Party Caucus appreciates the fact that the intervention was made in terms of Act 108 of 1996, the Constitution of the Republic of South Africa, and therefore accepts that such intervention was essential given the challenges caused by the overdraft facility in the Provincial Administration.
Caucus has noted with relief, the vast improvements which have been achieved since the inception of the national cabinet's intervention endeavours. To date, the overdraft facility of the Limpopo Provincial Administration has been drastically reduced to around R 1 Billion and this has improved the cash-flow of the Provincial Govt. This can be attributed to the immense work and co-operation between both the Provincial Govt and the National Treasury.
The Party Caucus also discussed the historical context in which this overdraft challenges arose. The bank overdraft commenced in the 1999/2000 and picked up in 2003/04 and again in 2006/07 Financial Years. The Occupation Specific Dispensation (OSD) had an adverse consequence on the Provincial purse, because when effected; mainly in the Depts of Education, Health and Social Developments, it was not well appropriated. This has exacerbated the overdraft facility of the Limpopo Provincial Administration.
The ANC Party Caucus noted the absence of regulations in the implementation of the intervention by National Government. It has further taken note that the Constitution of the Republic does not make provision for engagements with the Provincial Legislature when such an intervention becomes necessary. This therefore requires further discussion within both the Legislative sector and the ANC as an Organisation.
Section 134 of Act 108 of 1996 empowers the Legislature to appropriate finances to the Provincial Administration. The Constitution further requires that the Provincial Government must account to the Legislature on the usage of the appropriated budget. The Party Caucus also acknowledges the weaknesses of its oversight systems which were supposed to ensure that every Govt Department adheres to the appropriated budget. This would have averted instances of recurring wasteful, unauthorised and fruitless expenditures by various Govt Depts.
The Party Caucus's determination to achieve a clean audit by 2014 remains non-negotiable. It is therefore in that context, that the ANC Party Caucus agreed to intensify its oversight role over the Provincial Govt. The ANC has taken responsibility over the challenges facing the Provincial Administration, and therefore it remains its responsibility as the Ruling Party at both Provincial and National level to resolve all these challenges.
Statement issued by Hon Jan Tsiane Chief Whip of ANC Party Caucus, Limpopo Legislature, March 13 2012
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