Budget deficit villains need reality check
Governors and their deputies at a past meeting in Nairobi. Last week, 23 counties announced they had huge budget deficits. It takes serious gumption to send in a budget with a deficit the first time that you ever have to do so.
The article highlights a report presented by Gauteng’s Department of Finance to the province’s Finance Portfolio Committee — Gauteng Province is home to South Africa’s financial and administrative capitals Johannesburg and Pretoria. The report states that most of the province’s officials are belabouring under the following conditions: drowning in debt with garnishee orders (orders to attach property of an individual) averaging six per employee; suffering from high levels of stress and depression; employees have a high mortality rate; and employees are often absent from work on Mondays and Tuesdays on unscheduled sick leave.
The province pays 42 billion rand (Sh369 billion) a year in salaries to its nearly 182,000 employees. The auditor general Terence Nombembe also released a report on the same day stating that most of the country’s 278 municipalities battle to function with officials who can’t do their jobs; chief financial officers, municipal managers and supply chain managers were in short supply.
The consequence is that 71 per cent of the entities audited were dependent on consultants to assist with financial reporting, which of course comes at a cost. Outsourced services, the report found, cost more than 378 million rand (Sh3.3 billion) in 2011/12.... Read the full, comprehensive news article and discuss at Business Daily Africa