MEC’s News Articles Date: Thursday, 13th June 2019 Paper: OFM Heading Youth entrepreneurship key to end high FS unemployment, stagnant economy Reporter: OLEBOGENG MOTSE:

“Now is your time to build your history agenda."

This is the prevailing message from the newly appointed MEC of Finance in the , Gadija Brown, to the province’s youth, as she marks ten days in office. In a media briefing held at the Provincial Treasury’s headquarters in Bloemfontein on Thursday, May 13, the MEC emphasised the significance of youth entrepreneurship in growing the province’s ailing economy, as the country celebrates youth month.

She further lauded the youth, especially those living in the township, for their resourcefulness and ability to hustle as the country faces a soaring unemployment rate and an economy in a critical shape. Brown says the Provincial Treasury, along with its many stakeholders, including banks, other government departments and the National Youth Development Agency (NYDA), will continue to provide the youth of the province with support.

Statistics ’s (Stats SA) labour figures for 2019’s quarter one indicate the Free State has the highest unemployment figures in Central South Africa. The province’s unemployment rate stands at close to 35%, more than 8% higher than both the North West and the Northern Cape provinces. Brown maintains government isn’t the only answer to turning the province’s economy around. “The government is top heavy when it comes to the compensation of employees and if the government takes on more people, the lack of services will increase,” the MEC warns. In early 2019, Brown’s predecessor, Elzabe Rockman, revealed in her budget speech that the province contributed a paltry 5% towards SA’s total GDP over a three-year time frame. The Free State’s economy is predicted to improve marginally in 2019.

The then MEC attributed the province’s stagnant economy to a decline in the industries of agriculture and mining between 2009 and 2017. These industries are at the heart of the province’s economic activity. Stats SA reveals government is now the leading industry in not just the Free State but the Eastern Cape as well.

Brown has further committed herself to mentor ten young people from the province, for now, to help guide them on investing, saving and purchasing shares. The MEC expressed how passionate she is about ensuring that the youth understand how to grow their wealth, with the little assistance they are getting from the government, by using sound financial ideas.

FS Treasury intervenes in distressed municipalities

Paper: Courant

Date Thursday, 13th June 2019

Reporter: KATLEHO MORAPELA

The financial state of municipalities in the Free State continues to be a matter of great concern. This is according to the newly appointed MEC for Finance, Gadija Brown. Addressing the media earlier today as she marks 10 days in office, Brown said municipal financial woes, their lack of revenue collection and collapse of services are amongst some of the pressing issues that the provincial department of finance is concerned with.

She says they have thus far engaged four municipalities namely, Masilonyana, Mafube, Kopanong, and Mohokare on their state of affairs and measures that could be taken to help them out of their financial rut.

She has alluded that they are currently in the process of establishing a municipal financial recovery services unit to support these municipalities and others that are distressed.

This programme, once established, will be implemented in conjunction with the Provincial Department of Cooperative Governance and Traditional Affairs.

“When we looked into supporting these municipalities, we did not only look at their finances but at innovative mechanisms that could be implemented to bring about change, for example through solar systems and water reticulation systems and so forth,” said Brown.

Her focus on municipalities come just weeks after the DA in the Provincial Legislature raised concerns over the state of the Maluti-A-Phofung Municipality and the collapse of services.

This cash-strapped municipality is amongst the many that grapples to provide basic services such as refuse collection, water, and electricity to its residents. It is counted amongst the 18 Free State municipalities needing urgent intervention, as it owes the water board and power supplier over R3.8 billion. Coupled to this, it has made news over its non-payment of salaries and contributions to third parties.

OFM News last month reported on the equipment belonging to the municipality that was seized by the sheriff of the court due to failure to pay Eskom.

It is, nonetheless, one of the Free State municipalities, alongside Matjhabeng Local Municipality listed in the Auditor-General’s latest report as amongst those with high irregular and fruitless expenditure.

The Head of Department, Godfrey Mahlatsi, added that that non-payment by members of the public, who can afford to pay for services but don’t do so, is a contributing factor to the current state of municipalities. This is coupled with their high wage bills.

The two, however, commits to bring about the much needed change to these municipalities. Brown said although this won’t happen overnight, it is amongst their top priorities.