It is hereby madeknown 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 Mpumatanga, and took effect on 3 April 2001.
WHEREAS, in accordance with its responsibility in terms of section 100 of the Constitution, the NationalGovernment desires to take appropriate steps in terms of section 100(l)(a)of the Constitution to ensure that the Province fulfils its executive obligations.
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 1999100 and the 2000/01financial years.
ensure that its expenditure remains within the R7,998 billion resource envelope of the Province for the 2001/02 financial year.
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 amountnot exceeding R20 million; and present to the National Treasury, by 30 June 2001,a detailed cash flow plan for the2001/02financial year.
assessing improving the capacity of financial and management in key spending departments (e.g.
(a)decentralist the management of the Basic Accounting System (BAS), ProvisioningAdministration System (PAS) and the PERSAL function; an?
withdraw the facility to issue hand-drawncheques.
consenttothe National Treasury's participation in the Committee,. in an observer capacity.
when the Budget for the 2002/03 financial year istabled, the MTEF Budgetprovides for a contingency reserve of an amount not exceeding R20 million annually; and in the budgets foreach of the 2002/03, 2003104 and 2004105 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 to rationalise departmental processes and administrative structures inorder 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 paymenti to the South African Revenue Services and the GovernmentEmployeesPension Fundand in respect of the payment of other legitimate claims against the Provincial Revenue Fund, including for the payment of municipal rates and charges andother creditors and suppliers.
steps to review alltariffs, fines, feesandrents to bring them in line with the levels of other provinces; and a register of all government and immovable houses other properties, their locationandcondition, 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 maybe determined by theMinister, provide the Minister with comprehensive reports, prepared by the MEC for Finance and co-signedby 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, includinganoutline 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'sMTEF budget.
This agreementtakeseffect on 3 April 2001 and is valid for a period not exceeding 12 months: Provided that if, as a result of a comprehensivereview of the Province's compliance with the terms of this agreement to be carried out in March 2002, the Ministerconsiders it necessary for this agreement or any term thereof to continue in force beyond that 12 monthsperiod, the Minister shall, in writing, so inform the Premier.