It is hereby made known for general information that an agreement as set out in the Annexure hereto has in terms of section 100 of the Constitution been entered into between the Government of the Republic of South Africa and the Government of the Province of Mpumalanga.
The Agreement has been signed on behalf of the Government of the Republic of South Africa by T A Manuel, MP, Minister of Finance and on behalf of the Province of Mpumalanga by N Mahlangu, MPL, Premier of the Province of Mpumalanga, and took effect on 3 April 2001.
WHEREAS, in accordance with its responsibility in terms of section 100 of the Constitution, the National Government desires to take appropriate steps in terms of section 100(1)(a) of the Constitution to ensure that the Province fulfils its executive obligations.
The Province undertakes to appoint, in terms of section 132(2) of the Constitution, a Member of the Executive Council for Finance ("the MEC for Finance") by 15 May 2001.
The National Government undertakes to grant the Province an amount of R300 million to be utilised to fund the Province's outstanding financial commitments accumulated over the 1999/00 and the 2000/01 financial years.
appropriately reallocate, through the Adjustments Estimate, the contingency reserve of R297 million to the Budget Votes: Provided that, to the extent necessary, it may provide for a contingency reserve of an amount not exceeding R20 million; and present to the National Treasury, by 30 June 2001, a detailed cash flow plan for the 2001/02 financial year.
assessing and improving the capacity of financial management in key spending departments (e.g. Education, Health and Welfare), including appointing appropriately qualified and experienced Chief Financial Officers (CFOs); and effectively dealing with unauthorised expenditure through, amongst other things, taking disciplinary steps against those responsible for such a breach of treasury control measures.
ensure that suspense accounts are cleared on a monthly basis decentralise the management of the Basic Accounting System (BAS), Provisioning Administration System (PAS) and the PERSAL function; and withdraw the facility to issue hand-drawn cheques.
ensure that the Committee evaluates expenditure reports, at least quarterly, and advises the Provincial Executive Council on financial and fiscal issues; and consent to the National Treasury's participation in the Committee, in an observer capacity.
when the Budget for the 2002/03 financial year is tabled, the MTEF Budget provides for a contingency reserve of an amount not exceeding R20 million annually; and in the budgets for each of the 2002/03, 2003/04 and 2004/05 financial years, respectively, the Province provides for a surplus budget of at least R50 million to finance the debt of the province as at 31 March 2001 and takes such steps as are necessary to finance any other remaining debts, without unduly disrupting the provision of basic services.
the imposition of a limit to the addition of new vehicles to the provincial fleet; and the initiation of processes to rationalise departmental and administrative structures in order to eliminate the unnecessary duplication of functions.
The Province commits itself to determine, by 30 June 2001, its total debt commitments and to comply timely with all financial obligations, including with regard to its payments to the South African Revenue Services and the Government Employees Pension Fund and in respect of the payment of other legitimate claims against the Provincial Revenue Fund, including for the payment of municipal rates and charges and other creditors and suppliers.
steps to review all tariffs, fines, fees and rents to bring them in line with the levels of other provinces; and a register of all government houses and other immovable properties, their location and condition, the identity of their occupants, the rent paid and confirmation that all accrued rentals have been collected.
The Province undertakes to, on a quarterly basis or such other periods as may be determined by the Minister, provide the Minister with comprehensive reports, prepared by the MEC for Finance and co-signed by the Premier, on progress in implementing this agreement.
The Province undertakes to, by 31 May 2001, provide the Minister with the actual total costs of the building, including an outline of all its financial commitments, guarantees and other liabilities arising from its involvement in the Riverside Government Building Complex, to report on the steps taken or to be taken to resolve any issues arising from the said complex and to incorporate such liabilities into the province's MTEF budget.
This agreement takes effect on 3 April 2001 and is valid for a period not exceeding 12 months: Provided that if, as a result of a comprehensive review of the Province's compliance with the terms of this agreement to be carried out in March 2002, the Minister considers it necessary for this agreement or any term thereof to continue in force beyond that 12 months period, the Minister shall, in writing, so inform the Premier.