As ActionSA, we are deeply concerned about the current financial situation in Gauteng. The Finance MEC himself confirmed on 26 September 2024 that the province is in a very precarious financial position, which could deteriorate rapidly if the provincial government is not careful.
This is particularly worrying given that 80% of the current budget is spent on health and education as confirmed today by the MEC himself. The health department, in particular, has been flagged for non-compliance multiple times, raising concerns that funds may be misused as we are not seeing any significant improvements despite the substantial expenditure.
Additionally, the unresolved issue of the e-Toll debt amounting to R20 billion (R12 billion in debt, R4 billion in interest, and an extra R4 billion for road maintenance), continues to hold the province back. The MEC has not provided a clear answer on how this debt will be repaid, further complicating the financial outlook.
The MEC’s contradictory statements about the province’s financial health, claiming it is good to save face while also admitting the risk of bankruptcy, are confusing and unhelpful for the people of this province or for investors looking to invest their money into Gauteng.
The bigger question remains: will the R53.9 billion currently available be sufficient to keep the government afloat until March of this year, given the significant issues faced by the three biggest spending departments: education, health, and infrastructure development? With zero planning to improve the monitoring of spending in the province we have little hope.
As ActionSA we have called for and continue to demand the implementation of strong monitoring and evaluation tools and financial controls in these three departments to ensure proper spending and disbursements of provincial funds. We will be closely monitoring the spending of these departments to ensure that the government does not fail, as this would have a profound impact on the people of Gauteng. Without overhauling governance, monitoring and evaluation systems to ensure strong oversight measures, the department is unlikely to stem the flow of irregular and wasteful expenditure.
We are also worried about the finance department’s poor planning, notably its failure to anticipate issues such as Gauteng’s declining percentage of the national population, which impacts provincial budget. This issue should have been anticipated with adequate preparation from the department, which has not been the case.
We urge the provincial government to take immediate and decisive action to address these financial challenges and ensure the responsible use of public funds for the benefit of Gauteng residents.
ActionSA Responds to MEC Maile’s State of Gauteng Government’s Finances Report
As ActionSA, we are deeply concerned about the current financial situation in Gauteng. The Finance MEC himself confirmed on 26 September 2024 that the province is in a very precarious financial position, which could deteriorate rapidly if the provincial government is not careful.
This is particularly worrying given that 80% of the current budget is spent on health and education as confirmed today by the MEC himself. The health department, in particular, has been flagged for non-compliance multiple times, raising concerns that funds may be misused as we are not seeing any significant improvements despite the substantial expenditure.
Additionally, the unresolved issue of the e-Toll debt amounting to R20 billion (R12 billion in debt, R4 billion in interest, and an extra R4 billion for road maintenance), continues to hold the province back. The MEC has not provided a clear answer on how this debt will be repaid, further complicating the financial outlook.
The MEC’s contradictory statements about the province’s financial health, claiming it is good to save face while also admitting the risk of bankruptcy, are confusing and unhelpful for the people of this province or for investors looking to invest their money into Gauteng.
The bigger question remains: will the R53.9 billion currently available be sufficient to keep the government afloat until March of this year, given the significant issues faced by the three biggest spending departments: education, health, and infrastructure development? With zero planning to improve the monitoring of spending in the province we have little hope.
As ActionSA we have called for and continue to demand the implementation of strong monitoring and evaluation tools and financial controls in these three departments to ensure proper spending and disbursements of provincial funds. We will be closely monitoring the spending of these departments to ensure that the government does not fail, as this would have a profound impact on the people of Gauteng. Without overhauling governance, monitoring and evaluation systems to ensure strong oversight measures, the department is unlikely to stem the flow of irregular and wasteful expenditure.
We are also worried about the finance department’s poor planning, notably its failure to anticipate issues such as Gauteng’s declining percentage of the national population, which impacts provincial budget. This issue should have been anticipated with adequate preparation from the department, which has not been the case.
We urge the provincial government to take immediate and decisive action to address these financial challenges and ensure the responsible use of public funds for the benefit of Gauteng residents.