POLITICS

Creecy fails to table provincial financial statement – Adriana Randall

DA says AG must get a copy of statement and provide residents with an unfiltered reflection on the true state of province

DA to write to AG as MEC Creecy misses consolidated financial statements deadline

1 November 2016

The DA will write to the Auditor General of South Africa (AG) to obtain a copy of the Gauteng Provincial Government’s consolidated provincial financial statement, which Finance MEC, Barbara Creecy failed to table in the Legislature within the prescribed timeframe.

According to Section 19(1) of the Public Finance Management Act (PFMA), Creecy had up until yesterday, 31 October 2016, to present the Legislature with the consolidated report, which gives an overall review of the provincial government’s performance for the past financial year.

In the 2014/15 financial year, for which the consolidated report was never tabled before its due date either, the GPG’s received a qualified audit opinion from the Auditor General.

The AG found that that the GPG racked up billions in accruals, legal liabilities, and fruitless and wasteful expenditure.

According to the report, R2.22 billion worth of accruals have been outstanding for longer than 30 days. 

This has a massive impact on service delivery and deals a heavy blow to the budget process, as delayed payments are rolled over to the next financial year.

Delayed payments also take their toll on service providers who cannot get by without secure cash flow.

Of serious concern was the fruitless and wasteful expenditure which amounted to R416 million in 2014/15, up 66% from the previous year’s R166 million. These funds could have been used on underfunded programmes, such as student bursaries, drought relief and support to NPOs.

Findings like these beg the question whether there is more of the same in the 2015/16 report?

The DA looks forward receiving the report from the AG and providing residents of Gauteng with an unfiltered reflection on the true state of province.

Issued b y Adriana Randall, DA Gauteng Shadow MEC for Finance, 1 November 2016