Monday, 19 December 2016

To: All Media

Attention: News Editors / producers

The MEC for Finance, Economic Development and Tourism, Mr Sikhumbuzo Kholwane has welcomed the Finance Ministry’s decision to decline a request to place the Mpumalanga Provincial Government under Section 100 of the Constitution.

This decision follows the submission of a petition to the Minister of Finance on the 28th of October 2016 wherein the Economic Freedom Front (EFF) in Mpumalanga raised their own issues with regard to the financial administration of the Provincial Government.

Minister Pravin Gordhan clarified the conditions that may necessitate that a provincial government be placed under administration and found that such does not exist at the present moment.

MEC Kholwane said he concurs with the Ministry’s assertion that the issues raised by the party do not constitute a failure by the Province to fulfil its obligations in terms of the section 100 (1) (a) or 100 (1) (b) of the Constitution.

In his response to the EFF, Minister Gordhan also highlighted the success of some of the Provincial Government’s interventions on financial administration.

“Despite the dire fiscal conditions of the country the Province has excelled in areas such as cash management and ensuring sufficient minimal cash flow which allowed the departments to honour their transactional obligations”, said Minister Gordhan.

The Provincial Treasury will continue to address supply chain challenges by capacitating the officials on effective implementation of the legislative prescripts, strengthening contract management and assisting the suppliers whose valid invoices are not paid within the prescribed 30 days.

“An audit improvement plan has been finalised and it covers all departments and public entities, including the four departments and public entity that received Clean Audit outcomes in the regulatory audit of the PFMA institutions in the 2015/16 financial year.

“The interim audit process for ten (10) auditees (i.e. departments and public entities) which forms part of the measures to improve financial management and consequently the audit outcomes of the Province has also commenced”, concludes MEC Kholwane.

Issued by the Mpumalanga Provincial Treasury :

For more information contact Letshela Jonas on 013 766 4323 / 079 5000 154