SECTION27 WELCOMES CABINET DECISION TO TAKE OVER PROVINCIAL GOVERNMENT DEPARTMENTS
Following an emergency meeting on 5 December 2011, Cabinet announced that it would be placing key departments in Limpopo and the Free State under administration, and assisting the Gauteng Department of Health and Social Development with its financial administration and supply chain management processes. SECTION27 welcomes this decision.
In particular, we welcome Cabinet's move to take action to resolve the financial management crises that are rapidly pushing many provincial departments, and possibly many of the provinces themselves, towards economic collapse.
Recognising the importance of this move, SECTION27 believes that the following issues should be emphasized:
- While the national government's proposed interventions are in line with its powers and obligations as contemplated by section 100 of the Constitution, it is clear that Cabinet's decision is long overdue.
- Without this intervention, service delivery in these provinces, particularly with regard to health, would have been further compromised, and might even have collapsed.
- If these interventions are going to result in meaningful and long-‐term change, the relevant national government departments must develop detailed plans of action that address the fundamental causes, including developing plans to prosecute rampant corruption.
- If these interventions are to make any real difference, the proposed plans of action must not only address issues at the provincial level, but also ensure that national departments are better equipped to fulfil their own obligations; many of them are already under resourced, lacking skilled personnel, and will now have additional responsibilities as a result of the interventions at the provincial sphere of government.
Cabinet's decision to intervene in Limpopo, the Free State and Gauteng is one that is undoubtedly necessary in ensuring that financial mismanagement no longer compromises service delivery. It must be remembered that while the non-‐payment of service providers is untenable, the most devastating consequences of any failure to resolve these crises will be felt most severely by the poor. This cannot be allowed to happen.
Intervention in terms of section 100 of the Constitution is necessary
Cabinet's move is in line with national government's responsibility in terms of section 100 of the Constitution which states that "[w]hen a province does not fulfil an executive obligation in terms of the Constitution or legislation, the national executive may intervene by taking appropriate steps to ensure fulfilment of that obligation."
These steps include taking control of provincial obligations to ensure that a minimum standard of service delivery is maintained. This is a call that SECTION27 made more than a year ago following the release of the Integrated Support Team Reports, commissioned by former Minister of Health, Barbra Hogan, into financial management within provincial departments of health. It was clear then that these departments were failing to properly manage their finances and if left unchecked would result in the crisis we see today.
National government must develop clear plans of action
Although the intervention of the Treasury is necessary, and additional financial resources may be necessary (for example to assist the NHLS) this alone will not fix what is fundamentally wrong in these provinces.
National government must lead in developing a clear strategy for long-‐term solutions that will ensure that these provinces have both the resources and capacity to fulfil their obligations, as well as the ability to manage their finances properly.
It is therefore critical that national government accompanies this decision by producing and publicising detailed plans that address the following:
- The nature of the interventions that will be carried out in each province and department;
- Emergency plans to prevent the break down of services in the short term;
- How the interventions will ensure that services are not interrupted; and
- How these interventions will result in long-‐term improvements in financial management processes in these provinces.
Statement issued by Daygan Eagar, Reseacher/ BEMF Coordinator, SECTION27, December 6 2011
Click here to sign up to receive our free daily headline email newsletter
