Gauteng Finance MEC Lebogang Maile has dismissed mounting media reports about the province's financial balance, claiming that it was on the edge of bankruptcy.
Image: Itumeleng English/independent Newspapers
Gauteng Finance MEC Lebogang Maile has dismissed mounting media reports about the province's financial balance, claiming that it was on the edge of bankruptcy.
"These articles merit correction as they are grounded on an erroneous premise that will only serve to sow despondency among the residents and businesses in the province," he said.
Maile addressed the media on Tuesday in Johannesburg, outlining the province's financial status. The briefing also responded to the critics over Gauteng's finances, which have been under scrutiny since the beginning of the six administrations.
Many said Gauteng has the biggest budget but there was nothing to show for that.
However, Maile reiterated that while operating under a strained fiscus environment, the province was not facing imminent bankruptcy.
The province is currently sitting with a budget of R169 billion.
"While these assertions are not new, and have previously been refuted, there is a need to provide a comprehensive response in the public interest.
"The matter of possible bankruptcy, even in the current financial year, should be refuted. Gauteng’s budget of R169 billion is substantial, but its impact depends on how wisely it is spent," he said.
Maile urged departments and entities to adopt a disciplined approach to spending, ensuring every rand translates into meaningful progress.
"Efforts to improve spending efficiency are already under way. This includes standardising pricing for frequently procured items, and the introduction of a comprehensive raft of practice notes that reinforce fiscal discipline, eliminate wastage, improve accountability, and enhance the province’s ability to meet its development goals," he added.
He further urged journalists to report accurately, cautioning against the potential negative impact of misleading narratives.
"Beyond the panic that such reports can cause to residents of Gauteng, they have the potential to also impact businesses and diminish investor confidence at a time when the provincial government is working hard to strengthen the provincial revenue," he said.
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