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'Limpopo is financially sound again'

The premier says the province is now finally able to pay its bills.

Limpopo Premier Stanley Mathabatha. Picture: www.limpopo.gov.za

JOHANNESBURG - Limpopo Premier Stanley Mathabatha says the province's financial affairs are now in order and has blamed a complete disregard for cash flow systems on the Treasury being declared bankrupt.

Mathabatha has attributed more than R2,7 billion in unauthorised expenditure to his predecessor, Cassel Mathale.

This led to health workers and teachers not being paid and massive gaps in service delivery.

Five provincial departments were placed under financial administration at the end of 2011 and Cabinet on Monday announced the intervention had finally ended.

National Treasury intervened after the provincial government failed to secure an overdraft from the South African Reserve Bank.

The departments were then declared insolvent.

Mathabatha says the province is now finally able to pay its bills.

"We can pay our bills, we are financially sound now. When you have an organisation that has an absolute disregard of the laws of the establishment of proper systems, you'll land into this kind of serious mess."

Finance Minister Nhlanhla Nene and a host of other ministers met with Mathabatha and several MECs on Monday afternoon.

The minister said the end of the intervention represented a new era of governance in Limpopo.

"Limpopo has turned the corner and its administration is in the process of being handed back to the provincial executive, but the national executive will continue to play an oversight role."

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