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Despite Limpopo Premier Cassel Mathale’s recent re-election as provincial ANC chairperson, pressure mounts for his removal from the premier’s office. This follows Finance Minister Pravin Pressure to oust Premier Gordhan’s press conference last week were the extent of Limpopo’s financial woes were laid bare.
Gordhan spoke to reporters for the first time on Thursday since Cabinet decided late last year to intervene in the running of at least five Limpopo provincial departments by placing them under administration.
The reason for Cabinets’ intervention became apparent when Gordhan announced that:
Limpopo will end the current financial year with a R2-billion shortfall; Unauthorized expenditure grew from R1.5-billion in 2009 to R2.7-billion in 2011;
The province owed suppliers R138 million, but that only half of these payments could be verified and approved for payment on 23 December.
The provincial health department has projected overspending its budget by R461 million.
In November 2011 the province asked the Treasury to increase its overdraft to R1.77-billion;
Some service providers were being paid eight times in one month; and
On many occasions payment was demanded without supporting documentation, such as invoices and contracts.
“Throughout last year, National Treasury had cautioned the Limpopo provincial Treasury that the province would not have sufficient cash to finance its 2011/12 budget obligations.
The province had been spending beyond its means and this had to stop,” Gordhan said.
The national government had since assisted in verifying payments and settling accounts with service providers, while a call has been made to health facilities to continue procuring essential services to ensure the smooth running of public health in the province.
Mathale who chaired the Provincial Executive Committee (PEC) meeting held in Polokwane on Sunday told members of the PEC: “We know and understand that this situation has had a hugely negative impact for various communities and we want to apologise profusely for any pain caused. We are working around the clock to resolve issues of payments and procurement of essential services to all communities.”
In the meantime James Lorimer, Democratic Alliance shadow minister of cooperative governance and traditional affairs said in a statement issued this week “Limpopo Premier Cassel Mathale must take political responsibility for the crisis in Limpopo and resign. If Mathale is unwilling to go, then the ANC as a political party must get rid of him. Failure to do so indicates tacit approval for his klepto-administration, or at least a failure to understand its seriousness.”
But Mathale is clinging on to his position and along with the members of the provincial executive committee, he now blames national government’s intervention for the melt-down of service delivery in the province.
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