ANC finally acknowledges KwaZulu-Natal’s fiscal challenges

Issued by Francois Rodgers, MPL – DA KZN Spokesperson on Finance
28 Nov 2019 in Press Statements

Today, during a Debate on the KwaZulu-Natal (KZN) Adjustment Appropriations Bill in the provincial Legislature, the ANC finally acknowledged the fiscal challenges facing our province.

The about-turn comes after years of warnings by the DA about the current financial crisis within the province and the causes thereof. These include:

  • Irregular expenditure of R12.4 billion;
  • Unauthorised expenditure of in excess of R105 million;
  • Operational under-expenditure reflected in the mid-year report of R3.4 billion;
  • Unspent conditional grants to the value of R19 million – now lost to the national fiscus; and
  • The non-filling of vacant posts resulting in an under-expenditure of almost R1.1 billion.

Today, the DA did not oppose the KZN Adjustments Budget in recognition of the ANC’s admission that we have a problem.

While we welcome this apparent epiphany, this acknowledgement will be closely monitored by our Members in the Legislature, through oversight in committees and of the political responsibilities of the Executive.

Today, the DA again reiterated the resolution adopted by the Finance committee, as a result of our proposal, that Departments submit monthly cash flow and expense reports including the filling of vacant posts and the expenditure of conditional grant funding on a monthly basis to committees.

This is the only process that will provide effective oversight and ensure a balanced expenditure.

To date this resolution has not been effectively implemented and we now call on the Executive and committee chairs to ensure that it is enforced and to ensure any further financial meltdown.

The DA has always and will always put forward solutions aimed at the development of a capable state – one which will improve the lives of the people of our province by addressing socio-economic challenges and building a vibrant economy.