THERES’s going to be consequence management within the department of Health; and no funds will be allocated.
That’s’ a warning from visibly irritated MEC for Finance and Economic Development in Gauteng, Lebogang Maile, who was addressing media corps this week.
The department received unqualified audit opinions with findings indicating non-compliance with supply chain regulations.
“Health department is a headache, in that it is seating with billions on litigations and this cannot be tolerated,” says the worried Maile, who also stressed there will be no added funds to be allocated to this department.
“The MEC and entire management chain must account and I will make certain this happens. All of us are accountable because we’re paid salaries from MECs to Ministers, meaning someone must be accountable. It can’t be business as usual at this department, seated with a billion on litigations,” he warned.
Maile said Government plans to strengthen internal controls and enhance consequence management.
“We firstly want to make sure that we improve efficiencies in Health. We are going to be working with them to make sure that we get value for money for every service that we provide.”
The MEC was presenting the province’s finances and the audit outcomes of the 2023/2024 financial year.
He highlighted Gauteng government could be bankrupt by next year; close to R6 billion in the red, if we are not careful but reassured the public funds ‘were in good hands’.
Seven out of Gauteng’s 14 provincial departments, including Economic Development, achieved clean audits. However, five departments- Human Settlements, Social Development, Roads and Transport, and Sports, Arts, Culture, and Recreation, including Health – received unqualified audit opinions with findings indicating non-compliance with supply chain regulations.
“These departments have a challenge with consequence management indicating that recommendations from the completed investigations have not been implemented.
“In addition to this, material misstatements in annual financial statements are an issue in eight of the provincial departments.
“This indicates weak internal controls and a lack of adequate management reviews in the financial reporting process,” he indicated.
Scrapped April this year, on the e-tolls saga, Maile promised the provincial Government will pay R3bn instalment to SANRAL next Monday, as part of R20bn debt.
“This R20 billion, R12 billion is the debt, R4 billion is the interest and another R4.1 billion for the maintenance,” noted the MEC.
This meant road users would no longer be charged for the use of the controversial Gauteng Freeway Improvement Project (GFIP) electronic tolling gantries.
The gantries and their cameras will, however, remain operational and be repurposed to assist road safety and crime-fighting initiatives.
In addition, motorists will still have to pay their historic debts as required by law.
The Gauteng government needs to pay R12.9 billion of e-toll debt the Sanral incurred to build the road infrastructure as well as deal with the backlog of maintenance and rehabilitation of the network.
The National Treasury will foot the remaining 70% of R43 billion.
Maile pointed out that the province’s budget was expected to shrink, with a reduction of R15 billion in the short term and up to R35 billion over the next five years.
“Apart from the R20 billion of e-tolls, there’s R15 billion that has been cut on our budget because of budget cuts at a national level. So in these five years, our budget is R35 billion less… that’s what we are dealing with.”
The provincial government was allocated a total of R165.8 billion for 2024/2025.
Asked how they intend to source more funding, he indicated they have three source of funding models: Equitable share (money given to municipalities, of which is the biggest budgets);
Conditional grants- for education, health, transport etc;
Owned revenue- that is generated from licensing, patient fees, liquor board and gambling, Tourism events, etc.
On Life Esidimeni matter, the MEC said as per court’s order or judgement they will abide by it and pay.
Some of the public figures we spoke to have recommended the MEC for Health and her entire management resign with immediate effect.
Image (Headache. MEC for Economic Development and Finance in GP, Lebogang Maile, was at pains explaining the status of Health dpt during media brief in Sandton this week).
