WeeklySA_AdminPoor: There was a legacy of apartheid and the levels of poverty were extremely high.
By Monk Nkomo
The Eastern Cape province had the highest number of material irregularities which resulted in an estimated loss of R197 million during 2023-2024 which contributed to the growth and development of the area being significantly hampered by poor governance, mismanagement of public resources and corruption particularly at a municipal level.
This was said by President Cyril Ramaphosa at a meeting between the National Executive and the Eastern Cape provincial Executive Council . This was the fifth formal engagement that the national executive was having with a provincial executive after having had similar engagements in Limpopo, Mpumalanga, KwaZulu-Natal and Gauteng since November last year.
The Eastern Cape, Ramaphosa added, had significant challenges in realising its potential. There was a legacy of apartheid, the bantustans and the migrant labour system. The levels of poverty , inequality and unemployment remained extremely high.
There was also a significant infrastructure backlog which affected the provision of water and electricity, healthcare, education and transport. This was exacerbated by the growing impact of climate change. As a result of these challenges, the province’s natural and other endowments were not supporting inclusive growth in an equitable manner.
‘’ We are called upon to answer the cries of our people for better service delivery, for jobs, for decent healthcare and education and for protection from crime and gender-based violence. We must be concerned at the sight of pensioners being forced to cross raging rivers in drums because there are no bridges or sick patients lying on the floors of hospitals because there are no beds. We must be concerned when we see the collapse of services and the deterioration of infrastructure in our metros, cities and towns.’’
Ramaphosa said the extent of these and other challenges meant that they needed to make critical decisions about resource allocation and spending in a difficult economic climate. The Government of National Unity was called upon to drive inclusive growth and job creation within an ever volatile global economy.
Despite progress in many areas, the Eastern Cape province ‘s growth and development was significantly hampered by poor governance, mismanagement of public resources and corruption particularly at a municipal level.
‘’ According to the Consolidated General Report of the Auditor General for 2023/ 2024, the Eastern Cape had the highest number of material irregularities of all provinces, which resulted in an estimated financial loss of R197 million. Of the 30 material irregularities identified, 13 remained unresolved.’’
The President added : ‘’ Not only must we pay attention to how well public funds are managed. We also need to pay attention to how these funds are used.’’
According to the Auditor General, the education department did not achieve 80 percent of its targets for public ordinary schools and infrastructure delivery performance indicators. While the AG’s report showed that the province was making progress along the path of improved governance and financial management, it also pointed to areas that needed significant improvement.
The report noted that since the end of the previous provincial administration’s term, stable leadership had strengthened oversight, increasing the number of departments with clean audits from five to nine.
The submission of good-quality financial statements improved from 62 percent of departments at the start of the administration to 75 percent in 2023/2024 due to proactive support by the provincial treasury.
Ramaphosa said the visit to the Eastern Cape was part of commitment as the Government of National Unity to engage with provinces on a more regular and structured basis. The purpose of these engagements was to open a new frontier for inter-governmental cooperation.
‘’We hope that these direct engagements will complement the work of bodies like the President’s Coordinating Council, which brings together national, provincial and local government to discuss common programmes, challenges and tasks. We want to strengthen the ecosystem of collaboration’’.
The Government of National Unity had defined a set of strategic priorities for the term of the 7th administration.
These included driving inclusive growth and creating jobs, tackling poverty and the high cost of living, and building a capable, ethical and developmental state. The Eastern Cape provincial government had aligned its Provincial Development Plan with these priorities.
Ramaphosa reminded the Eastern Cape Premier, Oscar Mabuyane, that in his State of the Province Address in February, he had identified a number of ‘growth frontiers’ that would be the focus for the province for the coming financial year. These included agriculture, manufacturing, oceans economy, digital economy and tourism.
The province had also spelled out its plan to deal with persistent service delivery challenges. ‘’We look forward to the upcoming presentation which will outline these priorities in greater detail and provide a roadmap for implementation’’.
The Eastern Cape, the President added, was one of the most richly endowed provinces in terms of natural splendour, arable land, a lengthy coastline, well-located ports and several universities.
‘’All of these endowments should be used for economic growth and job creation.’’
