Gordhan, ministers to host briefing on Limpopo

Pravin Gordhan, Minister of Finance.

Finance Minister Pravin Gordhan, accompanied by a high level panel of ministers will host a media briefing in Limpopo on Thursday on the progress of interventions in the province, the National Treasury says.

"The members of the media are invited for an opportunity with the ministerial delegation to demystify the misconceptions currently at play in the public domain," the treasury added. 

Earlier this month, Gordhan met with the Premier of Limpopo, Cassel Mathale, to discuss matters relating to the implementation of the section 100 intervention in the province. 

"The intervention seeks to strengthen and reinforce effective and efficient cash management, budget management, supply chain management and infrastructure related delivery," the National Treasury said at the time.

Both parties agreed that the most pressing priority was to present a credible budget in the province within the legal time frame. 

Finances of the province need to be stabilised and the payment of service providers with legitimate claims has to be ensured. 

The meeting demonstrated "the urgency and the common understanding" of stabilising the provincial administration in the interest of protecting the integrity of government's finances and dealing decisively with key weaknesses that compromised 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," the treasury added. 

"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 was in the interest of all parties concerned that Limpopo province regained stability and had the necessary capacity and support to ensure efficient and cost effective service delivery in the province, treasury said. 

Late last year, Cabinet invoked the implementation of section 100 (1) (b) of the constitution to place Limpopo's departments of health, education, public works, treasury, and roads and transport under national administration. 

Cabinet raised concerns about the province's finances and governance after Mathale asked for a R1 billion bailout from treasury.