Consolidated Provincial Financial Statements
Gauteng Finance MEC Barbara Creecy has until October 31 to make the province’s consolidated provincial financial statements available for public scrutiny – which the DA firmly believes belies the true state of the province’s financial performance.
The Public Finance Management Act makes it clear that this report must be tabled in the Legislature, something which has not happened since March 2014.
Under the watch of Premier David Makhura and Finance MEC Barbara Creecy, the Gauteng Provincial Government (GPG) has been lauded in some quarters as affecting “game-changing” strategies to enhance government services.
However, after going to great lengths to retrieve the consolidated financial statements for the 2014/15 financial year – which was not tabled by end October 2015, the DA can reveal that the GPG’s finances are all but sound and received a qualified audit opinion from the Auditor General.
The AG found that that the GPG racked up billions in accruals, legal liabilities, and fruitless and wasteful expenditure.
Click here to view the report.
According to the report, R2.22 billion worth of accruals have been outstanding for longer than 30 days.
This has a massive impact on service delivery and deals a heavy blow to the budget process, as delayed payments are rolled over to the next financial year.
Delayed payments also take their toll on service providers who cannot get by without secure cash flow.
With Premier Makhura announcing that the GPG would support the Township Economy by procuring goods and services from the informal sector, the GPG’s current payment record will be the deathblow for many small to medium service providers.
Fruitless and wasteful expenditure amounted to R416 million in 2014/15, up 66% from the previous year’s R166 million. These funds could have been used on underfunded programmes, such as student bursaries, drought relief and support to NPOs.
The DA looks forward to MEC Creecy tabling the report within the next 11 days so as to provide a true reflection of the real state of Gauteng’s financial affairs.
DA Gauteng Shadow MEC for Finance
060 556 4342