[ Home ] [ Speeches & statements ]

11 September 2008

Members of the media, welcome and thank you very much for heeding our call, when we invited you to this briefing session, on the progress made by the Department of Finance in implementing its mandate, from the beginning of the financial year, that is, from 1 April 2008 to date. We plan and promise to have these briefings on a quarterly basis to keep you abreast of the developments regarding the provincial government's expenditure and on other promises made by this department.

I would also like to pass our sincere apologies to one of your colleague, by the name of Mr Buks Viljoen, who could not make it because of the inaccessibility of the venue to him. He wanted to come and had confirmed attendance, but the venue we chose has failed us to cater for his physical condition. Now, this actually poses a challenge to owners of buildings such as this one, to ensure that they cater for people in Mr Viljoen's condition. We promise that we will ensure that in future, such an unfortunate situation does not recur. We truly apologise for the over-sight.

As the Department of Finance, which is housing the Provincial Treasury, we are mandated by Constitution of the country (Chapter 13 of Act 108 of 1996), the Public Finance Management Act (PFMA) Act 1 of 1999 (as amended by Act 29 of 1999), the Division of Revenue Act, Treasury Regulations and the Provincial Legislature to:
* Prepare and manage the provincial budget,
* Enforce uniform treasury norms and standards,
* Promote and enforce transparency and effective management in respect of revenue, expenditure, assets and liabilities of provincial departments and entities, and
* Ensure that provincial fiscal policies do not materially and unreasonably prejudice national economic policies; amongst others.

We have a role as well, to ensure that funding of provincial priorities is also informed by the Provincial Growth and Development Strategy (PGDS). We have just last week, reviewed the PGDS and will continue to make sure that future funding is in line with the blueprint being addressed in the strategy.

Having said that, it is important to indicate to you that our mission therefore, as the Department of Finance, is:
"To allocate available resources consistent with provincial government's strategic objectives and priorities through effective monitoring of resource utilisation, prudent financial management, advice and support for enhanced service delivery."

Allow me then to report back to you as to how far have we gone in fulfilling our mandate as the Provincial Treasury of Mpumalanga.

A) Budget and expenditure management

1. First quarter provincial spending (as at 31 July 2008)
* The provincial administration has spent six billion rand, 220 million and 214 thousand as at the end of July 2008, which represent 33,2 percent of the total appropriated budget of R19 billion,

* This is an improvement compared to the spending of four billion rand, 791 million and 260 thousand during the same period in the last financial year, which represented 28,5 percent of the total budget of R16 billion, 210 million and 778 thousand.

* The spending benchmark set by the National Treasury for the four months is 33 percent, meaning that the province has actually past the mark by 0,2 percent.

* The highest spender under the social services sector is Education at 34,5 percent (that is, three billion rand, two million and 984 thousand against a budget of eight billion rand, 934 million and 232 thousand); followed by Social Services at 33,2 percent (R219 million, 904 thousand against a budget of R662 million, 332 thousand) and Health at 32,2 percent (one billion rand, 367 million and 96 thousand against a budget of four billion rand, 241 million and 773 thousand).

* The aggregate expenditure for the social services sector stands at 33,7 percent compared to 29,8 percent during the same period last year.

* The highest spender under the non-social services sector is local government at 39,2 percent (that is, R96 million, 119 thousand against a budget of R245 million, 229 thousand). It is followed by Housing at 36,7 percent (R270 million, 673 thousand).

* The aggregate expenditure for the non-social services sector stands at 31,6 percent compared to 25,2 percent during the same period last year.

* Overall, the expenditure shows a serious improvement compared to the last financial year.

2. Provincial infrastructure spending (as at 31 July 2008)
The Provincial Treasury is required to support departments with the delivery of infrastructure, especially where challenges have been identified.

The Department of Health and Social Services is still experiencing challenges with respect to slow expenditure on infrastructure delivery.

* Infra-structure spending for the social services sector over a four months period (as at the end of July 2008 stands at 24,8 percent compared to 20,2 percent during the same time last year.

* The highest and most improved spender is Education at 38,1 percent compared to 23,3 percent the same time last year.

* Overall, a total of R239 million, 749 thousand has been spent for social services infrastructure provision against a budget of R966 million, 524 thousand.

* With regard to infra-structure spending for the non-social services sector, a total of R296 million, 315 thousand has been spent, which represents an improved spending of 32,9 percent compared to 20,4 percent the same time last year.

In an effort to turn around the situation of low infrastructure spending especially in the most crucial social services sector, the Provincial Treasury together with the National Treasury has come up with an intervention in the form of the Provincial Technical Assistance Teams (PTATs) and the Operational Support Teams (OSTs), who have been deployed to infrastructure delivery departments for the next two years – the aim being to turn around the situation regarding infrastructure delivery.

As a result, we have identified small projects that can be packaged into smaller sub-programmes in order to improve the pace of infrastructure delivery in the province. We intend to drive the implementation of these projects through a steering committee comprising the affected department, and the Department of Public Works, which is our implementing agent.
The projects identified, include:
* Upgrading and maintenance of provincial hospitals and equipments,
* Construction of three community health centres, and
* Upgrading and maintenance of sewerage plants.

Construction of three new community health centres
Of particular significance, is that the construction of three new community health centres in Kwa-Mhlanga, Bushbuckridge and Greylingstad will be prioritised. Sites have already been secured for the three proposed community health centres.

Upgrading and maintenance of sewerage plants
The condition of sewerage works in our province is cause for serious concern. All the works are a potential health hazard and require immediate attention. As the Provincial Treasury, we have visited a number of such purification works owned and operated by the provincial government. This was in response to a statement that was made by the executive council early this year. Due to the seriousness of the matter, it was proposed and agreed by the executive council that the replacement of sewerage and water treatment plants, should be prioritised and addressed urgently.

The Department of Public Works will continue supporting the affected hospitals as they are not serviced by the local councils, as in most cases, the sewerage works are in the rural areas. We can report that work has commenced at the following hospital sewerage plants: Matibidi, Tintswalo, Shongwe, Mmametlhake Mapulaneng and Tonga hospitals.

The cost of implementing all the above projects is R110 million, 49 thousand and is detailed as follows:
* The upgrading and maintenance of provincial hospitals and equipments at R59 million, 849 thousand,
* The construction of the Community Health Centres is estimated to cost R39 million, 500 thousand,
* Upgrading and maintenance of sewerage plants estimated at R10 million, 700 thousand.

B) Financial governance
* Submission of annual financial statements to the auditor general by provincial departments.

In terms of Section 40(1)(c) of the PFMA, all departments must submit their annual financial statements to the auditor-general and the provincial treasury by 31 May 2008. We can report that 11 votes out of 13 (then) were able to submit on time, while the other two submitted the next working day.

* Audit outcome for 2007/08 (Provincial summary including provincial public entities), is available from the provincial office.

* Monitoring of infrastructure delivery departments

Monitoring was performed on infrastructure projects in three departments and 20 municipalities during this quarter. The relevant accounting officers were provided with reports indicating the findings with regards to these projects.

* The Master Systems Plan
As the Department of Finance, we had deemed it necessary to commission a study on how best we could improve service delivery through technology. The Master Systems Plan (MSP) has been developed and we are in the process of implementing it. The MSP will enable the province to best manage information and the deployment of information technology (IT) infrastructure, in such a manner that it supports the realisation of the objectives and goals of the province. It will provide guidelines to the Provincial Government in terms of where we need to improve our ICT in order to speed service delivery.

* Provision of internet access to rural communities
In order to assist our learners in rural communities and communities at large to be kept abreast with developments around them, we plan to roll-out ten internet kiosks in the second quarter of this financial year in the following areas:

1. Mbangwane Thusong Service Centre
2. Louieville Thusong Service Centre
3. Fernie Thusong Service Centre
4. Piet Retief Finance Satellite Office
5. Marapyane
6. Kwa-Mhlanga Library
7. Mmametlhake Satellite Office
8. Thulamahashe Satellite Office
9. Bushbuckridge Satellite Office
10. Casteel Thusong Service Centre

C) Our contribution to youth empowerment
During the period under review, we conducted five empowerment road-shows targeting the youth. It is always said that an investment in knowledge, always pays the best interest.

Thus the purpose of the road-shows was to impart information with regard to bidding or tendering for the provision of required services, but not limited to government services. The following areas were covered:

* Bushbuckridge
* Machadodorp
* Driekoppies
* KaBokweni
* Emzinoni (Bethal)

Over five thousand youth were reached through these road-shows.

In conclusion, ladies and gentlemen, as the Department of Finance, we will continue to ensure that the limited financial resources are allocated equitably to address the provincial priorities set out by the PGDS, the five flagship projects and infrastructure delivery for the 2010 FIFA World Cup. We will continue to fulfil our mandate with zeal and determination, in pursuance of "A better life for all." Our monitoring capacity and support to departments and municipalities will be strengthened at all costs. We commit to direct our efforts more than ever, to infrastructure delivery in the province.

Once more, I take this opportunity to thank you for coming to this briefing session. As you – the media, are the eyes and ears of our electorates, it is imperative that we continue to strengthen this partnership. I must once again on behalf of the department, apologise to Mr Buks Viljoen, for having denied him access to such valuable information. We promise that this situation will indeed be corrected in future, when we choose venues for our briefings. Please continue to partner with us and respond positively when we invite you in future.

I thank you!

For more information, contact:
Mohau Ramodibe
Tel: 013 766 4216
Fax: 013 766 9422
Cell: 082 771 9950
E-mail: mohauram@mpg.gov.za

Issued by: Department of Finance, Mpumalanga Provincial Government
11 September 2008