Nie Cele
Gauteng MEC for Finance and E-Government, Nomantu Nkomo-Ralehoko believes her department is riding the crest of a wavewhen it comes to themandate of ensuring that all provincial financial resources are managed effectively, in a manner that promotes transparency, accountability and delivery of services to the public.
This is contained in the 2021/22 annual report she recently tabled at the Gauteng Legislature.
At first the MEC congratulated Treasury for maintaining a clean audit outcome in the 2021/22 financial year.
Furthermore she credited the staff for a job well done stressing that credit goes to the HOD Ncumisa Mnyani, CEO Oupa Seabi, and the staff of Treasury and GIFA, for the hard work and dedication to improve public financial management and sourcing of alternative funding for infrastructure projects in our province.
“This shows that Gauteng Provincial Treasury leads by example!
“This leadership role was also demonstrated through the support it provided to the province in the period under review, which resulted in the achievement of clean audits by 13 departments and entities. The province also achieved 15 unqualified audit outcomes by departments and entities.
“This audit outcome means that Treasury as a department has achieved consecutive clean audits for the past 10 years! In addition, the Provincial Revenue Fund, which is an account that is managed by Treasury where all monies received by the province are paid also achieved a clean audit in 2021/22. This means that like Treasury, the Provincial Revenue Fund achieved clean audits for 10 consecutive years,” Ralehoko-Nkomo pointed.
READ FURTHER UNALTERED REMARKS MADE BY THE MEC.
Honourable Members, the Gauteng Infrastructure Financing Agency, which is a government component of Treasury, also achieved a clean audit in 2021/22 financial year. This means that the entity has recorded seven consecutive clean audits. To put it slightly differently, GIFA has achieved clean audits every year since it was established.
Treasury Performance Highlights
Looking at the performance highlights of Treasury in the year under review, we can report that the department developed the revenue strategy to enhance the collection of own revenue through amongst other things leveraging technology, to fund provincial priorities.
The provincial wage bill was maintained at 56% in the year under review. This was 4% below the upper limit of 60% to ensure availability of budget for service delivery. As part of efforts to strengthen internal controls in the province, all planned internal audits were conducted, and a total of 92% of audit reports were issued by end of the financial year.
To ensure economic transformation, the department continued to monitor spending on designated groups and amongst other things, produced reports on 30% spend on township suppliers including those participating in high value contracts. Reports on sub-contracted suppliers were also produced during the year under review.
To build capacity and capability to strengthen financial management practices in municipalities, the department held 52 IGR engagements with relevant stakeholders during the year under review. As part of improving compliance with Municipal Financial Management Act, we conducted quarterly assessments in all 8 delegated municipalities.
Alternative funding of infrastructure projects
Turning to GIFA, Honourable Members, we can report that this entity achieved its annual targets for 2021/22 financial year.
Some of these includes sourcing of two strategic projects for the province, namely, the OR Tambo International Airport Special Economic Zone Precinct 2 and ORTIA Springs Precinct. Secondly, the Automotive Industrial Development Centre (AIDC) Inland Port.
GIFA also completed two feasibility studies for the following projects: the Krugersdorp Game Reserve and the City of Johannesburg Alternative Waste Treatment Technologies. In terms of projects at implementation stage, we can report that key milestones were achieved at the Gauteng Industrial Development Zone.
The Superblock office park was completed, and now accommodates the Gauteng IDZ offices, jewellery manufacturing regulators and the South African Revenue Services. Phase 3 of this project, which is the Jewellery Manufacturing Precinct is under construction and will be completed early next year.
I also need to mention that GIFA has submitted the Treasury View Recommendation one. This means that once a project feasibility study is completed, it is submitted to national treasury for review and testing the viability of the project. The next step which is TVR 2(a) is to request national treasury to review in terms of demonstrating the value for money. The manner in which the value for money is demonstrated, is by issuing the project to the market (issues a tender out).
In compliance with Section 40 of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), I hereby table the Annual Reports of Gauteng Provincial Treasury and the Gauteng Infrastructure Financing Agency.
