Hon Speaker, last year the national government instituted section 100(1)(b) interventions in the Eastern Cape and Limpopo provinces to assist in improving service delivery to the public. You will recall that at the time of the Limpopo intervention, there was an estimated R2 billion shortfall as a result of a combination of factors, including an accumulation of unauthorised expenditure and poor cash-flow management practices. As at 31 March 2012, the cash position had improved, with a positive year- end balance of R231,4 million. This positive cash position is due to cash management controls that were put in place in December 2011. While the cash position has improved and payments and procurement systems in departments have stabilised, further work still needs to be done.
The provincial treasury intervention team has instructed all departments to develop a fiscal recovery plan that must include strengthening departmental budget formulation processes and supply chain management.
Law enforcement agencies are looking into allegations of fraud, maladministration and corruption in a number of departments. Work is ongoing to improve services in all the affected government departments, including health, education, roads and transport.
Last year, Cabinet decided to intervene in the Eastern Cape education department, in terms of section 100(1)(b) of the Constitution of the Republic. Owing to legal uncertainty regarding the implementation of interventions in terms of section 100(1)(b) of the Constitution, legal advice was required to focus the implementation of the intervention. This was necessary and imperative as it became clear that we would be faced with challenges, and these did emerge.
The Presidential Task Team, which comprised five Ministers and five MECs from the Eastern Cape, recommended a different approach to implement the intervention in terms of which the Eastern Cape government would implement and the national government would monitor, oversee and evaluate the implementation of the intervention.
A team of Deputy Ministers visited the Eastern Cape to conduct a comprehensive monitoring and evaluation exercise on the implementation of the intervention, and a report was tabled in Cabinet.
Cabinet directed a full implementation of the intervention as intended by the Constitution. There is now a clear understanding and acceptance of the intervention in the Eastern Cape. Task teams focusing on the main areas of the intervention to the extent necessary have been established, and these teams are about to finalise their work plans.
We are confident that this time around we will be able to stabilise and normalise the Eastern Cape department of education, while ensuring that the right of the children of the Eastern Cape to quality basic education is upheld at all times.
Currently, there is no national legislation regulating interventions in terms of section 100. Government has introduced the Monitoring, Support and Intervention Bill to fill this gap, and to regulate interventions in terms of section 100, as well as all interventions in terms of section 139 of the Constitution. I thank you, hon Speaker.