Pretoria - Cabinet has announced that it will intervene in the financial 
administration of three provinces in the country.
The move, which was taken after a special Cabinet meeting on Monday, 
aims to address under-spending, overspending and challenges with supply 
chain management.
The three provinces are Gauteng, Free State and Limpopo.
"The Minister of Finance was asked by Cabinet to urgently review the 
situation in Limpopo and other provinces and report back to Cabinet on 
proposed actions to be taken to improve the financial situation and its 
impact on service delivery and provincial functions," Cabinet said in a 
statement.
While National Treasury and other relevant national departments have 
been engaging with various provincial departments over time to try to 
improve financial management and service delivery, Cabinet said the 
situation remained unsatisfactory.
Gauteng had requested National Treasury to help address their supply 
chain management and financial controls in the Department of Health and 
Social Development, which has been in the spotlight for not paying 
service providers on time.
Cabinet said Gauteng Premier Nomvula Mokonyane has been made to sign an 
agreement with the Ministers of Health and of Finance to solve the 
province's financial mismanagement.
In addition, urgent action will be taken in respect of the Gauteng 
Shared Services Centre (GSSC), which provides administrative services 
for all the province's departments.
Mokonyane will later today brief the media on the matter.
The Free State will be assisted with the Police and Roads and Transport 
Departments after poor financial management and non-compliance to supply 
chain management processes were identified.
The biggest rescue is in Limpopo, where five departments -- Treasury, 
Education, Transport and Roads, Health and Public Works -- will be taken 
over by the national departments.
Cabinet said the province had dried up its R757 million overdraft 
facility. The province had requested that its facility be increased by 
R1 billion to R1.7 billion in order to pay salaries.
This was declined and instead they were given an advance from their 
equitable share.
Cabinet said forensic investigations will be carried out in these 
provinces, with strict timelines, and there will be consequences for any 
illegal conduct uncovered.
A Monitoring Committee of seven ministers, led by Finance Minister 
Pravin Gordhan, has been established to help monitor these three provinces.
"This committee will be empowered to co-opt any other ministry as it 
deems appropriate," reads the statement.
Cabinet is also involved in the administration of the Eastern Cape 
Education Department, which is facing financial management problems that 
have crippled the schooling system. - BuaNews