The National Treasury has instructed all Limpopo government departments not to pay service providers for December.
|||The National Treasury has effectively stripped all Limpopo government departments of their executive powers, instructing them not to pay service providers for December.
This is despite the fact that the province has enough money to pay service providers who have rendered services, according to Premier Cassel Mathale.
The embargo followed a cabinet decision on December 5 to place five provincial departments under national administration over governance and financial concerns.
The cabinet identified the departments of health, public works, treasury, education and transport as departments whose MECs, chief financial officers and heads of department should cede their executive powers to national delegates.
But now, five more departments, including the premier’s office, that have not been affected by section 100 (b) of the constitution, are also feeling the pinch.
The Star has seen a copy of a memo from the provincial treasury, dated December 14, sent to all heads of department in the province.
The provincial treasury indicated in the memo that it had sought advice from the National Treasury about the way forward following the decision to place five departments under national administration.
Quoting a response from the National Treasury, the memo states that “in this regard, the National Treasury instructs you (Limpopo treasury) in terms of the section 6 (2) of the Provincial Finance Municipal Act, that you only facilitate the payment of salaries, commitments to Sars (SA Revenue Service), and government employment pension funds.
“All other payments should be (ceased) with immediate effect. Deviating from this instruction will be deemed to have disobeyed a national executive decision.”
The provincial treasury said funds and budgets were available, but that it had no authority to effect the payments.
The Star has also seen a letter that the Department of Safety, Security and Liaison, which has not been formally placed under administration, sent a service provider, informing it of the decision not to pay. Department spokesman Molebatsi Masedi confirmed that no service provider had been paid.
Last week, Mabotha PAP Productions, a service provider, offered free of charge its multimedia services, worth about R90 000, for the matric results ceremony.
“I have done it for the people,” said company director Pat Mabotha.
“Even the water bottles at the matric results ceremony had been donated,” said another source, who asked not to be named.
The premier, who attended the ceremony, openly slammed President Jacob Zuma’s government and said it was unacceptable that service providers had not been paid by “our leaders”.
A senior official in the Economic Development, Environment and Tourism Department said officials had also been instructed not to pay service providers.
“If they (the cabinet) feel they want to interfere in all the departments, why have they not put all of them under national administration?” asked another senior provincial government official.
Service providers who have not been paid include travel agencies, security contractors and suppliers of food. “It is the poor kids in schools who will suffer,” said one supplier.
National Treasury spokeswoman
Bulelwa Boqwana could not be reached for comment on Sunday. - The Star
