SPEECH BY PREMIER
Programme Director- MEC JI Mabena
Honourable MEC's
Heads of Departments
Chief Financial Officers
Dr Iraj Aberdian
Distinguished guests
Ladies and gentlemen.
My purpose today is to share with you some thoughts.
Sometime ago we met in almost similar circumstances to prioritise spending for the province. At the time we all pledged commitment to work towards the establishment of a people-centred province.
We pledged to build a caring society, which must guarantee the dignity of every citizen on the basis of a good quality of life for every women, man and child.
We invited all those in our country who occupy positions of authority and power to join in this new way of doing things, by engaging the people they service and lead in the common effort to transform all of us into people at work for a better life.
During the intervening months we engaged in an extensive process of consultation with all provincial stakeholders to ensure broad support for our strategy.
This process took time and effort to be finalised. Those among us who are impatient might argue that we could have cut some corners in order to speed up the process.
We deliberately did not do so – bearing in mind the imperatives of participatory democracy and a people driven society.
Following this hard work, I am confident that we have reached a remarkable degree of consensus on the way forward.
I believe that we have been successful in creating a provincial identity, a common loyalty and a shared passion for the development of Mpumalanga and all our communities.
The process of development and growth has gained momentum. Our challenge now is to guide this process; steer it in the right direction and to ensure that all our strategic objective are met.
Programme Director , as I mentioned earlier, I am here to share with you some thoughts. When I assumed office as Premier of Mpumalanga in June 1999, the Province had severe financial constraints.
The accounting systems, reporting mechanisms and controls needed to be reviewed and brought in line with acceptable accounting practices. The current financial year has witnessed a dramatic improvement in all of the spheres I have alluded to.
Today I am proud to say that we have in place, the following reporting systems:
- One on One meetings scheduled on a monthly basis between myself, the Director-General, the relevant MEC, HOD and the Department's Chief Financial Officer.
- Fortnightly reports to the Cabinet Caucus
- As a standing rule every two months Departments are to report on their financial status to the Cabinet Caucus.
- Daily reporting by MEC's on achievements or crisis' within their respective Departments
It is now time to evaluate whether these reporting systems result in effective financial controls and are we delivering the necessary service to the communities.
In addition there is a compliance inspectorate in my office checking regularly whether there is compliance to treasury rules and regulations and whether administrative procedures are adhered to.
The Execuitve Council established the Finance Management Council (FMC) to manage the R300-million Section 100 Funds. In addition the FMC is to advise the Executive Council on financial management in general in the Province.
It is again necessary to evaluate whether these measures are sufficient and adequate enough for the promotion of effective financial control.
The implementation of the Basic Accounting System (BAS) in April this year was another step in the promotion of prudent financial management and accountability.
It is now necessary to take stock whether this financial system has resulted in an improved financial environment.
At this critical juncture it is necessary to exactly establish how far we are in order to adhere to the national norm of the 85-15 percent budgetary guideline, as recommended by the Finance and Fiscal Commission. It is my conviction that tremendous progress has been made in budgeting according to this rule.
Currently the province stands at a ratio of 83 percent to 17 percent. I must stress that this is not enough. It is difficult to move to this desired formula at once, but we must all endeavour to move towards the 85-15 percent ratio.
I want to commend all Heads of Departments and their Chief Financial Officers for there is currently a projection that there will be no overspending this financial year.
However, we must still improve on how we identify our key objectives and goals for we must align our programmes and our spending must be based on a programmatic system.
It is crucial and necessary that Departments spend the budget allocated to them in order to deliver better services to our people. We also need to look at how far are we in paying off the provincial debt as quantified on 31 March, 2001.
Departments are also expected to make provision for such debts in their budgeting processes for the next financial year. Departments must not allow an accumulation of new unfunded debts and debts that accumulate outside of identified programmes. We must stick to the promise of effective management and control of finances.
The year 2002 and 2003 must take into consideration, firstly, the compliance of the 85-15 percent ratio. Secondly, we must continue to deliver quality services to our people and lastly our budgets must be informed by social aspects according to national trends.
Early this year when we spoke in the provincial legislature, we recommitted government to accelerate the eradication of the final vestiges of the apartheid state and ensure its replacement by a democratic one.
We noted that we had made progress in setting up state institutions that act as instruments of change and that we had established policy frameworks that gave direction to these instruments.
At the time we noted that we needed to deepen the scope and extend the reach of state transformation, in order to expand the quantity and quality of services to all the people in the province, especially the poor.
These would include our campaign to ensure that we have health for all. To this end we pledged to provide health services, expand our primary health care to all and provide quality health care within the overall context of fighting poverty.
It would be done in a manner that improves the lives of poor and disadvantaged communities. We knew that these would demand greater integration and co-ordination in the operation of all structures of government, within national government and between the national, provincial and local spheres of government.
I want to remind MEC's and Heads of Departments of the three provincial priorities, that is:
- Economic Growth resulting in job creation
- Effective and accountable financial management, and
- Effective and efficient administration
In the government sector, fostering efficiency and reducing corruption are basic though difficult reforms to undertake. As we meet here today let us ensure that we consolidate our gains while making every effort to comply with the PFMA.
I believe that one of the main tasks of our review session today is to determine whether our budgeting has indeed served to uplift our people from the morass of poverty and want.
The second is whether in all our actions we have been left unblemished by self interest and lack of accoutability and a betrayal of the trust bestowed upon us by those who elected us into office. You see, there is a connection between clean and ethical government, and a successful economy.
Openness, honesty and transparency in government help economic growth. Surely people living in democracies deserve good government. By good government, I include clean and ethical government. These priorities apply equally to parastatals.
Due to financial constraints at the beginning of the financial year we did not allocate sufficient resources to the parastatals which are our delivery organs.
I now want to focus on the parastatals:
MEEC
This parastatal is a very crucial and important organ for its responsibility is to promote economic growth. There must be money available to finance emerging business and entrepreneurs. There is an impression that we are not doing what we are supposed to do.
However, the payment of the Riverside Government Complex is now at its end and we are on the verge of providing funds to parastatals. At the same time parastatals must ensure that the budgets available must go to clients and not for salaries.
For the past seven years parastatals have been involved in structural adjustments and this should now be finalized.
Proper checks and balances should be put in place on spending patterns of parastatals. Current newspaper reports of the MEEC is a matter of concern and is being investigated.
The Department under which this parastatal falls must look into this matter seriously. Corrective measures must be introduced so that we deliver services to the clients and the community.
MADC
Again in this instance adequate budget provision was not made for this parastatal. Serious consideration will have to be given to this parastatal when allocating own revenue. In the next financial year sufficient funds must be provided in order for the Agricultural industry in the province to develop further.
Disturbing employment patterns have recently been reported in this parastatal. The Department under which this parastatal falls must investigate these allegations, and if necessary put corrective measures in place to address this allegation.
Many individuals are owing this parastatal and it is therefore necessary to evaluate this debt and put measures in place to recover this debt.
Both the department and the parastatal must ensure that correct principles are followed at all times.
MHFC
It is important that this parastatal makes every effort to house the middle income group of our province. Again in this instance due to financial constraints there was no adeauate provision for the parastatal. However, this parastatal must be provided for in the next budget so that we ensure that we improve the lifestyle of our people.
MPB
This parastatal has its own unique problems such as the notorius Dolphin Deal. It is necessary to correct the unfortunate situation. We must debate as to how we can urgently take the Parks Board out of this situation.
The Parks Board must become self-sufficient at the same time the high spending patterns will have to be monitored, reviewed and rectified. This parastatal cannot be funded continuously while there is no revenue generated.
Issues such as the Dolphin Deal must be dealt with urgently.
All parastatals must indicate what debts they currently have, and what plan is in place to deal with this.
RTT
This is an important parastatal for it imparts skills to our people. It closely collaborates with the Department of Labour on the type of programmes and courses offered.
Progress has been made, however, we must provide adequate resources to this parastatal.
MTA
Research has shown that tourism has great potential in our Province, but it is now time to change this great potential into fruition.
Last year we launched the tourism growth plan, however, little has been done practically to enhance tourism in our Province. The relevant Department must come up innovative ways to address this issue.
I also want to indicate that the development along the Maputo Corridor is very slow. The relevant Department must regenerate viable interest and an injection of investments to ensure that this project grows into the magnitude that it should.
MPUMALANGA INVESTMENT INITIATIVE AND MPUMALANGA GAMING BOARD
Again in these instances, proper financial controls must be promoted and programmes to be put in place to enhance, in the case of MII – investment. And, in the case of MGB, revenue generation through the form of gaming taxes.
We have a responsibility to ensure the public service remains clean, efficient and responsive to the needs of the community, and I welcome the scrutiny of Government, which is vital in an open and equitable society.
We have nothing to fear from such scrutiny. But then unless we adhere to the following principles, we will fail the test of scrutiny.
The principles are, and I expect each one of you to adhere to them:
- Commitment to the rule of law.
- Honesty and integrity above private interests.
- Accountability and openness in decision-making and in all our actions.
- Impartiality in the execution of public functions
- Dedication and diligence in serving the community
Yes, all of us must adhere to these core values. There can be no debate about this: the civil service from top to bottom must maintain the highest standards of behaviour both in public and in private.
The community has high expectations of its civil servants. We must constantly strive to meet these expectations.
Programme Director, there are strong pressures which could destroy our system if we are not vigilant. Corruption is undoubtedly the most insidious and most difficult to defeat.
I trust that we will emerge from this Lekgotla with a renewed commitment, vigour and will, a new enthusiasm to build Mpumalanga into a winning province.
In conclusion it must dawn on all of us that budgets and budgetary systems are aimed at improving the lives of our people. Let us do all we can to ensure that our budget remains a people-centred one aimed at alleviating poverty, fighting HIV/Aids; providing a safety net to the vulnerable people in our communities and dismantling the last vestiges of apartheid.
The spirit is great, the commitment is strong, you can play a vital role in ensuring the mission, and goals of the Mpumalanga Province Government are met.
We must all act as leaders to fulfill this noble vision and desist from looking at one's own department, but rather the provincial administration as a whole entity, a team.