The chickens of the ANC’s deployment and jobs for cronies policy are coming to roost. National government admitted earlier this month that three ANC-governed provinces, namely Limpopo, Gauteng and the Free State, are on the brink of economic collapse and are in desperate need of a financial bailout. National government has been forced to dip into its national reserves amounting to billions to rescue these provinces.
The national government has been forced to place eight departments in Limpopo and the Free State under administration. Limpopo, which is the worst fairing province, has asked national treasury for another R1 billion bailout. This is over and above the R757.3 million overdraft just to pay salaries in November. Gauteng, despite it being the continent’s economic hub, needs a bailout of R627 million to pay for salaries and other financial disasters.
The national government expressed “concern” about the state of financial management and governance and the unsatisfactory spending and overspending.
The root of this problem is simple: people are in positions that they unqualified or incapable of undertaking the duties for which they have been appointed. Officials are appointed based on their political affiliation and even faction. As a result projects are not properly managed if at all because the people who are supposed to do so are not qualified to do so.
This is unsustainable. This month it all came to hilt when these provinces have effectively financially collapsed. Unless the ANC urgently changes their stance on their deployment policy more ANC-governed provinces may well also need to be bailed out.
One thing is for sure, no DA controlled province will need to be bailed out.
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