by Adv Boitumelo Babuseng, MPL – DA Northern Cape Provincial Spokesperson for Economic Development
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Date: 27 March 2018
The Democratic Alliance calls on the Northern Cape Provincial Treasury to come clean to the National Treasury about the true financial state of the province. During today’s meeting of the Portfolio Committee on Finance, Economic Development & Tourism, National Treasury appeared to indicate that the province is in fine financial health. This is despite the fact that the Provincial Treasury admitted recently that the financial health of the province is “deteriorating”.
It must be clarified why National Treasury believes there to be positive bank balances when the Provincial Treasury has reported to the Portfolio Committee that they project a negative bank balance of R530 million for the end of March 2018. Why is one set of information given to the Portfolio Committee and a different set of information is given to the National Treasury?
National Treasury’s calculations of the province’s bank balance do not take the impact of unauthorised expenditure, accruals and the provincial overdraft facility into account. By the Provincial Treasury’s calculations, the consolidated projected unauthorised expenditure will rise to R883 million at the end of March 2018.
This amount does not even include the accruals, which will also have to be settled. With only R247 million available to cover this debt, it is clear that something will have to give. Indeed, the Provincial Treasury calculates that it will take more than five years to cover all the unauthorised expenditure.
We will continue to question the Provincial Treasury, as the proper management of the available resources are crucial to the delivery of services.
Adv Boitumelo Babuseng, MPL
DA Northern Cape Provincial Spokesperson for Economic Development
082 302 2117 / 079 874 6179
071 251 5558