The DA is very much concerned with the fact that the Gauteng Province owes various service providers amounts to R2.4 billion for the 2015/2016 year.
The Gauteng Provincial Government (GPG) has incurred R2.4 billion in accruals for the 2015/16 financial year. This was revealed in the consolidated annual financial statements submitted to the Auditor General.
Accruals represent the amounts owed by GPG departments to various service providers and another state institutions in terms of services received in the previous year.
The following provincial departments disclosed accruals in the consolidated financial statements of the GPG as follows:
- Health: R1.9 billion (or R1900 million);
- Education: R9 million;
- Roads and Transport: R86 million;
- Infrastructure Development: R61 million; and
- Human Settlements: R304 million.
The withholding of timeous payment to service providers results in these departments avoiding unauthorised expenditure.
This speaks to a lack of financial controls and realistic budget planning within the GPG and further begs the question of whether spending occurs in line with the available departmental allocations? In all probability, less services are delivered than was planned and budgeted for.
Service providers which are not paid within 30 days bear the brunt as they are placed in a precarious position with low cash flow, severely affecting their business. Further, this places jobs at risk.
Premier David Makhura and Finance MEC, Barbara Creecy, need to walk their talk on having service providers paid on time to ensure that service delivery objectives are achieved timeously.
The DA will continue to scrutinise the finances of the GPG and hold the executive to account.
If the DA were in charge, officials responsible for financial mismanagement would be fired. Service providers would definitely be paid on time. In so doing, there will be better services and a more prosperous economy.