Chairperson, the DA wishes to express its concern regarding the centralisation of all financial transactions in the Free State. On 8 May 2009, the Premier of the Free State instructed that all financial transactions, which include all supplies of goods and services, be carried out by provincial treasury until further notice.
The DA has been inundated with complaints from service providers and government employees regarding the nonpayment or late payment for goods and services. Departments cannot function effectively: They are struggling to obtain even the most basic goods and services; section 21 schools do not have funds to pay certain teachers or suppliers; there are problems with the lack of medical goods; and contractors are threatening to cease work for the provincial government. The assurances by Treasury that transactions will not be delayed have not yet been experienced in practice. The reason offered by the Premier for this decision, namely that it is to eradicate and prevent corruption with tenders and procurement, is highly questionable. This is especially so when the Premier himself has in the past week been implicated in allegations regarding bribes for gambling licences.
The DA also received complaints from providers that enquiries are made regarding their political affiliation and the possibility of gifts before any contracts are concluded with the Free State government and municipalities. Thank you.