Of the three affected provinces, Limpopo’s finances are in the worst shape.

Two of South Africa’s nine provinces are nearing complete economic collapse, and they, with a third, are in need of financial bailout from central government, according to cabinet spokesperson, Jimmy Manyi.

Cabinet has placed eight provincial departments in Limpopo and Free State under administration, while financial restructuring efforts by the Gauteng provincial government have fallen short, causing the Premier, Nomvula Mokonyane, to request a bailout from the Treasury to assist in meeting year-end salary commitments.

Limpopo has placed a request for a R1 billion bailout as well as a R757 million overdraft to pay for November salaries. Gauteng has requested R627 million to meet salary commitments. It’s not known what request Free State has made of the Treasury.

The terms of financial administration will see Limpopo’s treasury, education, transport and roads, health and public works departments fall under cabinet supervision while Free State’s treasury and police and roads and transport departments face the same fate.

Gauteng’s health department is the focus of cabinet concern, and has signed agreements with the ministers of health and finance to address financial difficulties.

The announcement is of particular embarrassment to the ANC, as all three of the ailing provinces are under their control. The cabinet has responded to allegations that much of the financial difficulty plaguing the provinces has its roots in corruption and financial mismanagement by declaring that “heads would roll” should investigations into irregularities uncover any illegal conduct.

[Source: Times LIVE]