The KwaZulu-Natal Government of Provincial Unity(GPU) led by Premier Thamsanqa Ntuli and MEC for Finance, Francois Rodgers launched a Provincial Financial Recovery Plan(PFRP) in Durban.
The Government of Provincial Unity(GPU) described the PFRP as a decisive intervention aimed at restoring financial discipline, strengthening governance, and ensuring prudent management of public resources.
The KZN Treasury mentioned that the PFRP aims to deliver R1,5 billion annual savings through tighter cost-containment, improved efficiency, and smarter allocation of resources.
Premier Ntuli said: “Where waste exists, it will be eliminated. Where processes are inefficient, they will be reformed”.
The KZN Treasury pointed out that the PFRP is a direct response to a myriad of fiscal challenges faced by the KZN Government of Provincial Unity(GPU).
The KZN Treasury stated that it is a matter of public record that the GPU inherited R10 billion of debt to suppliers. KZN entered the 2024/25 financial year with accruals amounting R9,5 billion.
The Provincial Treasury further stated that these fiscal pressures add to challenges that have occurred as a result of more than R66 billion in budget cuts from National Treasury and the increased cost of compensation of employees over the past five financial years.
MEC Rodgers said: “The PFRP provides a clear roadmap on how the GPU will reduce the debt burden on the KZN fiscus without compromising service delivery.”
“Our focus remains on the frontline departments of Education, Health and Social Development. These are at the coal face of service delivery. Ensuring their optimal function forms part of our vision to develop a capable and ethical state.”
The KZN Provincial Government under the Government of Provincial Unity(GPU) emphasised that will enforce professionalism in the public service.
“We will introduce structured institutional capacity-building programmes to ensure that every official, at every level, is equipped with the skills, tools, and systems required to implement the reforms we are announcing today,” added Premier Ntuli.
“Where there's no compliance, there has to be consequence management,” added MEC Rodgers.
The Provincial Treasury highlighted that they want every provincial departments to their own financial recovery plans as soon as possible.
"Provincial government departments will be expected to launch their own financial recovery plans over the course of next year.
These plans will be in line with value-for-money principles, ensure prudent management of financial resources and clearly define measures to reduce corruption in supply chain management processes amongst others," the KZN Treasury concluded.