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MEC PHALA DEDICATES 2015/16 BUDGET VOTE 05 to FORMER MINISTER OHM COLLINS CHABANE MEC for Finance Kgolane Phala Tabling the Budget in the Legislature

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MEC PHALA DEDICATES 2015/16 BUDGET VOTE 05 to FORMER MINISTER OHM COLLINS CHABANE MEC for Finance Kgolane Phala Tabling the Budget in the Legislature RifumoElectronic Newsletter The Heartland of Southern Africa- Development is about people MEC PHALA DEDICATES 2015/16 BUDGET VOTE 05 TO FORMER MINISTER OHM COLLINS CHABANE MEC for Finance Kgolane Phala tabling the Budget in the Legislature DEDICATION Famba Kahle Mun’wanati…!!! financial management practices as a provincial government. The 2015/16 Budget for Vote 05 is dedicated to PROVINCIAL TREASURY FUNCTIONS. the honour and memory of that outstanding son of Building and strengthening of the PT will be an the soil, great South African Collins Chabane. Cha- Section 18 sub-sections 1(a) and (b) of the PFMA on-going process in 2015/16. The PT has recent- bane a combatant for life, a patriot to the end, a of 1999 mandates the Provincial Treasury (PT) to ly appointed two Senior General Managers and fighter for freedom, contributed immensely to the prepare a provincial budget and exercise control two General Managers in an effort to strengthen struggle for liberation and the building of a non- over the implementation thereof by provincial the top structure of the PT. Also, in order to racial, non-sexist, united, democratic and prosper- departments and public entities. In addition, improve our support to all municipalities in the ous South Africa. He served our nation and coun- sub-sec 2 (i) provides that the PT may do anything province, an amount of R9 million has been try as the most loyal, dedicated, disciplined and further that is necessary to achieve its responsibili- appropriated to appoint an additional 13 committed leader. Our people have lost one of the ties effectively. Managers in the Municipal Finance Support Unit most hardworking, brilliant and thoughtful servant. in the PT. We thank him for his selfless and time-tested con- The systematic withdrawal of the Sec 100 inter- tribution. vention in the province has certainly emphasised PT will also shortly be appointing a team of 5 the need to strengthen PT to enable it to deliver financial specialists, additional to the structure, to Etlela hi kurhula Nhenha ya Tinhenha…!!! on its mandate and by so doing strengthen all our support our provincial departments and ensure index “Etlela hi - Budget Speech page 2-page 4 kurhula Nhenha - Budget Day in Pictures page 5 ya Tinhenha…!!! - Profile of Ms M P Raphesu Famba Kahle page 6 - House Keeping Mun’wanati…!!! - Stretch your lips ” page 7 2 Rifumo News 27 March 2015 that the gains made during the intervention are formance is monitored, and information is commu- sustained. nicated transparently among the parties and key stakeholders. You may recall that last year we reported that the In order to increase the capacity of internal audit- LPT will be introducing an improved mechanism for ing services in the Province, we will be appointing provincial expenditure monitoring, through the in- 40 internal audit learners who are unemployed troduction of vigorous quarterly bilateral meetings graduates that live in the Limpopo Province. These with the MEC and Executive Management teams of interns will undergo rigorous training for a period each department and their relevant public entities. of two years and the training will culminate in an We are happy to report that these meetings have Internal Audit Technician (IAT) qualification and the been taking place on a quarterly basis. IAT designation. This structured programme is pre- This initiative has achieved the intended outcomes sented by the Institute of Internal Auditors, South of improved provincial budget planning, implemen- Africa. The programme is a stepping stone to the tation and oversight. procedure manuals and a strategic procurement internationally recognised Certified Internal Audi- Most municipalities recorded an improvement on framework. tor (CIA) designation, for which all internal auditors the 2013/14 audit outcomes, however in an en- strive for. deavour to further improve the outcomes I have BANKING AND CASH-FLOW MANAGEMENT. The Provincial Internal Audit function plays a crucial extended the bilateral meetings to the Local Gov- role in institutional Public Corporate Governance. ernment sphere where I have already met with all As reported previously, we have managed to im- In fact, the Internal Audit Charter provides that the municipalities which received either a disclaimer or prove the cash position of the province and elimi- function not only provides assurance and consulting adverse audit opinion in 2013/14 and will continue nated the overdraft. The cash flow management services in Institutional Governance, but the Internal to do so. controls will be further strengthened in 2015/16. Audit Function has also been established to assist PT will also continue to improve the monitoring of departments in other governance related activi- compliance to the 30 day payment requirements as ties such as internal control and risk management. prescribed in Sec 38(f) of the PFMA and related In particular, the Charter has committed the func- Treasury Instruction. As a province the current aver- tion to assist HoD’s, Executive Management, Audit age compliance level of invoices paid within the Committees including other oversight structures by prescribed 30 days for the period April 2014 to providing assurance and advisory services. Some January 2015 was at 87%, up from the average of the assurance and advisory services include, but compliance during 2013/14 of 80%. There still re- are not limited to: mains some work to do in this area, especially in • Providing information on whether the In- our two large departments. These are the Provin- stitution’s policies, procedures and relevant regu- cial Departments of Education and Health. latory and legislative frameworks have been adhered to; providing key stakeholders with the ASSET MANAGEMENT. assurance that the state’s resources have been economically acquired efficiently utilised and the PROVINCIAL TREASURY’S INFRASTRUCTURE The management of assets had been a source of intended purpose has been effectively achieved; SPENDING SUPPORT. adverse audit opinion in the province. In striving for providing key stakeholders assurance that the in- an efficient and effective asset management sys- stitution’s assets and resources have been properly The integration of planning and implementation tem, the PT is currently rolling out the BAUD system safeguarded against theft, fraud, corruption, mis- across infrastructure departments remains one of coupled with robust and targeted training to en- use and the elements of nature such as rain, hail the prime areas of focus. The Provincial Govern- hance the skills base in asset management. We can storm and other natural disasters. ment has been allocated R5, 032 billion for in- confidently report that the BAUD systems roll out Tabling a budget of R52, 7 billion, poses an inher- frastructure delivery and the PT will intensify its is complete in all departments, except the Depart- ent risk as well as the public’s concern on the issues monitoring and evaluation of departmental infra- ment of Health. related to fraud and corruption. On behalf of PT structure plans, infrastructure expenditure trends The approach employed at the Department of I would like to assure our stakeholders and citizens against budget, performance on infrastructure pro- Health is tailored per institution, which has led to of the Province that we will take a proactive ap- jects, and continue to facilitate the roll-out of Infra- significant delays. PT is however in the process of proach towards the fight against fraud and cor- structure Delivery Management System (IDMS) as procuring additional scanners to fast track this pro- ruption as compared to a reactive approach. This approved by EXCO. ject. will be achieved by embedding the principles of As announced in this House during the Provincial Good Public Corporate Governance in Provincial Budget Speech and the SOPA by the Premier PUBLIC CORPORATE GOVERNANCE AND IN- Departments. Mathabatha. The PT has played a critical role in the TERNAL AUDIT. As the custodian of the “public purse” in the prov- establishment of the Infrastructure Planning Hub, ince, the nature of our work is to support, monitor with its main purpose being to recruit, attract and The primary responsibility for good governance in and provide assurance to key stakeholders that the retain skilled professionals in the built environment. public institutions rests with Executive Authorities. monies allocated to government organisations will This Infrastructure Planning Hub has been handed However, it is accepted that such a responsibility is be spent for the intended purposes as well as to over to the Public Works, Roads and Infrastructure often delegated to AO’s and / or HoD’s including ensure that value, is not only protected, but cre- and as such, the MEC of Public Works, Roads and their respective executive and senior management ated and enhanced. In an effort to coordinate all Infrastructure will elaborate further on this matter for implementation. these activities Provincial Treasury has developed a in his vote speech. Good Public Corporate Governance involves the combined assurance model that will integrated and set of relationships amongst the organization’s key streamline all assurance and consulting services. SUPPLY CHAIN MANAGEMENT. stakeholders, such as, citizens, interest groups, Exec- utive Authority and Boards of Public Enterprises, the PT in the province embraces the drive by the Na- Audit Committee, Senior and Executive manage- tional Treasury (NT) to reform the supply chain ment, to mention a few. These relationships
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