SPEECH BY MR. MANDLA NKOMFE, GAUTENG MEC FOR
FINANCE, AT THE TABLING OF THE 2012/2013 BUDGET VOTE
OF
THE
GAUTENG
PROVINCIAL
TREASURY,
GAUTENG
PROVINCIAL LEGISLATURE, 12 JUNE 2012.
Madam Speaker;
Honourable Premier;
Colleagues in the Executive Council;
Honourable Members of this House;
The HOD and Management of the Gauteng Provincial Treasury;
Comrades and Friends;
Ladies and Gentlemen.
INTRODUCTION
Madam Speaker, I am heartened to present the 2012/2013 Budget Vote
Speech of the Gauteng Provincial Treasury. As Members of this House are
aware, Gauteng Provincial Treasury became a stand-alone department in
April.
This development is consistent with Section 17 of the PFMA, and it is meant
to ensure that the Gauteng Provincial Treasury is adequately capacitated to
perform its duties accordingly.
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REVIEW OF THE 2011/2012 FINANCIAL YEAR
In reviewing the previous financial year, I will briefly outline some of the
milestones recorded by the Gauteng Provincial Treasury in the process of
implementing its mandate.
Madam Speaker, our responsibility is to ensure that we maintain a targeted
and balanced approach in the allocation of both financial and non-financial
resources to areas that support the achievement of our priorities as reflected
in the GPG Medium Term Strategic Framework.
We are also required to monitor that resources allocated are used for their
intended purpose, as required by the regulatory framework.
Therefore, our overall strategy in the year under review was focused on
improving the finances of the provincial government. This included the
important aspect of addressing accruals that are a serious burden to the
fiscus.
I am pleased to report that many milestones were recorded in this area. This
was made possible by improving efficiencies in the process of procuring
goods and services, and strengthening financial controls.
Specifically we implemented the following measures:
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o Ring-fencing conditional grants and infrastructure funds to
ensure that suppliers are paid on time;
o Work towards ensuring that the age analysis of accruals is 30
days in a given month;
o Ensuring that departments operate within the agreed cash
forecasts and/or allocations;
o Reducing substantially the unauthorised expenditure.
In addition to this, we successfully implemented resolutions taken at the
Premier’s Budget Committee and at the Finance Lekgotla to address
financial challenges experienced by the Gauteng Department of Health. We
are also working with the National Government mainly the Department of
Health and National Treasury to resolve the financial challenges in the
Provincial Department of Health.
Furthermore, we worked closely with the Department of Infrastructure
Development to enhance infrastructure expenditure. In this regard we
developed a joint program to accelerate infrastructure spending to achieve
infrastructure service delivery in the province. Our effort saw the opening of
Berth Gxowa hospital, and expediting the completion of Zola Hospital.There
is remarkable improvement on infrastructure delivery in the province, and
we are working towards completely turning the conrner for the better..
Madam Speaker, GPT is committed to ensuring that local government works
better. In the year under review, we continued with efforts to strengthen
intergovernmental relations with particular interest to municipal financial
management.
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Through the quarterly Municipal Finance Indaba Forums, we conducted
vigorous one-on-one engagement with key stakeholders in the municipal
finance space to ensure coordination and support.
The body of knowledge accumulated through these intergovernmental
engagements has assisted us to gain in-depth understanding of the financial
management practices in local government. This has enabled us to improve
the quality of our assessment of the monthly budget statements to a point
where they have become more diagnostic in nature. These reports now allow
for early warning and intervention in municipalities experiencing financial
constraints.
Furthermore, the Debt Management Committee established in the 2009/10
financial year continued to receive great support from both municipalities
and provincial departments as a key platform to resolving outstanding
government debt owed to municipalities for rates, taxes and services
charges.
To date, a total amount of over R1.5 billion has been transferred to
municipalities from various departments within the province and this
platform has provided a wealth of knowledge of local government sphere
which will provide the basis to unlock possible blockages in the
intergovernmental transfer system.
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THE 2012/2013 BUDGET VOTE:
Madam Speaker; let me now turn to the programmes and projects that we
will be implanting in this financial year.
I need to point out that our total allocated budget of the Gauteng Provincial
Treasury for this financial year is four hundred and twenty eight million,
nine hundred and thirty four thousand rand (R428, 934.000).
We plan to use these resources to provide strategic and operational support
to departments and municipalities in the province in order to facilitate the
achievement of inclusive economic growth.
In line with the announcements that we made when we presented the
2012/2013 Provincial Budget, improving Supply Chain Management
processes in the province is one of the most important areas that GPT will
focus on, not only in this financial year, but over the medium term period.
The department is currently engaging with the State Security Agency to vet
all SCM officials in the province.
Our belief is that this will assist in reducing deviations from normal
procurement processes, and thus avoid irregular and unauthorised
expenditure.
This intervention forms part of our efforts to root out fraud and corruption,
which manifest itself primarily in procurement processes. This move is in
line with the Gauteng Anti-Corruption Strategic Framework which identifies
fighting corruption as one of the key priorities of this term of government.
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Madam Speaker; as per the mandate of the Gauteng Provincial Treasury we
will ensure prudent municipal financial management. In line with this, the
focus will be on ensuring proper interface between the Municipal Finance
Indaba and the Premier’s Coordinating Forum.
We will strengthen the system of intergovernmental fiscal relations with
specific reference to the interface between planning, budgeting and
transferring of funds and as well as resolving debt owed between organs of
state.
In addition we will provide technical support in the implementation of
Generally Recognised Accounting Practice (GRAP) standards, while
strengthening the capacity of audit committees to respond to Operation
Clean Audit 2014.
As we have said before, Fiscal constrains force governments to choose
carefully between competing needs. Difficult decisions are required to
ensure that scarce resources are directed towards financing our priorities and
more effective service delivery, while ensuring that debt levels are
sustainable.
As the Gauteng Provincial Treasury, we are committed towards ensuring
financial stability of the province, while facilitating service delivery in a
tight fiscal environment.
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Therefore we will implement strategies that will result in prudent financial
management across the province. Furthermore, we will improve the
implementation of the Outcomes Based Budgeting approach to respond to
the prevailing environment and ensure effective resourcing of outcomes,
priorities and projects of the province
There will be continuous review and improvement of the provincial budget
process to strengthen its effectiveness in driving the provincial planning and
budgeting process, monitoring and evaluation of public spending on service
delivery.
Furthermore, Gauteng Provincial Treasury plans to increase the capacity for
managing the provincial performance monitoring and reporting. This
initiative aims to improve the quality of performance information in order to
realise the target and outputs of the province.
In respect to GPG Audit Committees, the Gauteng Provincial Treasury will
continue to ensure that GPG Audit Committees operate effectively and are
value adding partners to the Province by ensuring they are fully capacitated
with non-executive members with relevant skills and expertise.
The Department will also ensure that the Audit Committee operates under
approved and comprehensive GPG Audit Committee Charter.
In 2012/13, the provincial Treasury will embark on a number of
interventions to improve infrastructure delivery in the province. These
include, amongst many others, targeted capacity building around project
management
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Madam speaker, fiscal discipline remains a key focus for the provincial
treasury. Aspects of the contract management will be looked at thoroughly
this year.
We are fully aware that this will be no easy task. However, I am confident
that we have the necessary skills, knowledge and experience to carry out our
mandate. Our employees are committed to their work; and they are driven by
the desire to facilitate service delivery to our people.
CONCLUSION
In conclusion, Madam Speaker, let me thank the HOD Nomfundo
Tshabalala, the management and staff of Gauteng Provincial Treasury for
their dedication to the work that they do.
Indeed without their devotion, the accomplishments that GPT has achieved
to date would not have been possible. Many thanks to you all, you are
indeed our most valuable asset.
I therefore present Budget Vote 13 – the Gauteng Provincial Treasury to the
House.
Thank You
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