Minister of Finance meets with Limpopo Premier for the implementation of S100 intervention

10 Jan 2012

The Minister of Finance, Pravin Gordhan today met with the Premier of Limpopo, Cassel Mathale to discuss matters relating to the implementation of the section 100 intervention in the province.

They reiterated the commitment they made in December when they agreed to:

• cooperate in a collegial and professional manner during the intervention;
• ensure that the intervention is executed in an efficient and effective manner with the
• cooperation of all concerned; and
• ensure that service delivery is enhanced.

The intervention seeks to strengthen and reinforce effective and efficient cash management, budget management, supply chain management and infrastructure related delivery.

We agreed today that:

• The most pressing priority is to present a credible budget in the province within the legal time frame
• Finances of the province need to be stabilised;
• Ensure the payment of service providers with legitimate claims.

Today's meeting demonstrates the urgency and the common understanding of stabilising the provincial administration in the interest of protecting integrity of government's finances and deal decisively with key weaknesses that compromise service delivery in the province.

We recognise the importance of key service delivery programs in departments such as education and health. The authenticity of contracts and payments of these essential services will be prioritised and legitimate service providers will be paid.

However it is important to emphasise that the province begins to pay for goods and services based on the available cash in the bank, categorise and prioritise their suppliers in order to manage the available cash.

It is in the interest of all parties concerned that Limpopo province regains stability and has the necessary capacity and support to ensure efficient and cost effective service delivery in the province

Statement issued by Bulelwa Boqwana, National Treasury, January 10 2012

Click here to sign up to receive our free daily headline email newsletter