MEDIA STATEMENT ON THE AUDITOR GENERAL REPORT


For immediate Release;

MEDIA STATEMENT ON THE AUDITOR GENERAL REPORT

The Eff in the Free State is greatly troubled by the series of financial irregularities that continue to pervade the Free State Province. The ANC government’s lack of answerability and commitment towards running a clean governance structure is the main reason why we continue to delve deeper and deeper into uninteresting dilemmas.

Subsequent to the Auditor General’s recent audit outcomes we have witnessed troubling upswings in irregular and fruitless expenditure in the Province, which increased to an upsetting 181%, and thus by the same token tallied R 3.5 billion for the 2016/17 financial year. Truth is the Premier and his fly-by-night pool of “technocrats” are constantly found wanting on what seems to be dizzying array of technical issues.

We are very convinced as the Eff that even an elementary political economic practitioner would accept without hesitation, that government finances should never be treated as a simple utility of one office, as is done by the Premiers Office. Sad reality is that what was once perceived as a very scary trojan horse of corruption and looting particularly characteristic of the Premiers Office, has now trickled down to every single department and entity in the Province, thus destroying even the lower levels of government.

Magashule and his most trusted lieutenants have unsurprisingly steered the province into a disastrous financial crisis, with even a possible budget deficit looming over our heads in the coming financial year. This approaching tragedy is best captured by the AGSA’s all imposing statement “funds to be surrendered to the revenue fund and accruals and payables not recognized, have exceeded cash on hand by 2,6 billion. Therefore, a significant portion of the 2017-18 budget would be required to settle these obligations, reducing department’s ability to effectively deliver on their mandate”.

Furthermore, along with fraud and corruption it appears that 79% of financial misconduct in the Province is caused by non-compliance to Supply Chain Management legislation. Moreover, some notable delinquents who play a key role in growing such wrongdoings are none other than the Department of Health (input of R466 Million), Human Settlements (R115 million), Education (R 680 million), Sports Arts, Culture and Recreation (R 99 million). All of the aforementioned departments including DESTEA (Department of Economic, Small Business Development, Tourism and Environmental Affairs) have all received qualified audits from the AGSA.

Coupled with this terrible cloud of economic mismanagement is a budding and continuous trend of deindustrialization in the province, with a major reduction in occupancy rate of factories in the province, mainly from a 50% occupancy rate in 1994 to an awful rate of only 7% in 2017.

Question is, are we all in the grasp of some terrible psychology of contradiction? Some falsehoods devised by statistical indicators pointed to a provincial economic pulse that stood at 10.6% in April, combined with a healthy job creation pattern in the province. However the cold reality is that many factories in Botshabelo, QwaQwa and Thaba Nchu closed and many people lost their jobs. Also saddening is the fact that the textile sector (the remaining 7%) is currently controlled by the Chinese.

This presents a serious policy mismatch, and in the same way dislodges the principle of black business ownership. This goes a long way in demonstrating the parasitic and non-patriotic nature of Magashule’s government.

With this notice the EFF puts a direct indictment against the ANC leadership’s aptitude and capability to address the dual cancers of maladministration and corruption in the Province. But as we have properly suspected, the ANC is now under serious threat of a growing syndrome of greed and maladministration that increases the social distance between leaders and communities. They can’t be trusted!

Issued by EFF Free State

Enquiries: Khotso Morapela (Provincial Chairperson)

Contacts: 0766585033

Email: [email protected]

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