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Treasury DG Mogajane raises concerns with NW financial management

Dondo Mogajane says the government had to intervene in North West because of problems in financial management and supply chain processes.

FILE: National Treasury's Director-General Dondo Mogajane. Picture: YouTube screengrab.

CAPE TOWN - Treasury Director-General Dondo Mogajane says financial management in North West is a major concern because the province is not short of funds.

The national government was forced to step in after a crippling health sector strike triggered violent protests and a number of provincial departments have since been put under administration.

Mogajane was briefing the ad hoc committee of the National Council of Provinces that has been set up to oversee the national government’s intervention in North West.

The director-general says the government had to intervene in North West because of problems in financial management and supply chain processes.

“We are worried that there is a steady deterioration of financial management in the province.”

The province has racked up R15.3 billion in accumulated irregular expenditure.

Mogajane says North West has underspent its nearly R40 billion budget by more than R830 million, mainly in the key delivery departments of Education, Health, Roads and Public Works.

North West has a healthy cash balance of R1.4 billion at end of 17/18 year.

“The province has got resources, it’s got money, but there are challenges around supply chain management, of delivery…”

Mogajane also highlighted the absence of any consequences over the years for officials responsible for flouting Treasury regulations and procurement processes.

(Edited by Winnie Theletsane)