KZN Premier Thami Ntuli launches Provincial Financial Recovery Plan to save R1.5 billion
Centre: Premier Thami Ntuli launched the Provincial Financial Recovery Plan (PFRP) on Wednesday.
Image: Supplied
KwaZulu-Natal Premier Thami Ntuli has launched the Provincial Financial Recovery Plan (PFRP) which aims to deliver R1,5 billion annual savings through tighter cost-containment, improved efficiency, and smarter allocation of resources.
The plan was presented during a media briefing on Wednesday in Durban.
Premier Ntuli said: “Where waste exists, it will be eliminated. Where processes are inefficient, they will be reformed”.
The provincial government said the PFRP is a direct response to a myriad of fiscal challenges faced by the KZN Government of Provincial Unity (GPU).
The shortfall of funds has come under scrutiny in recent weeks due to the R500 million property rates bill that the KZN Public Works department owes to eThekwini Municipality.
Matters came to a head when the municipality disconnected water and electricity supply to vehicle licensing offices, which fall under the Department of Transport, due to the unpaid debt. The KZN Public Works department has declared an inter-governmental dispute regarding the matter.
“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 to R9.5 billion. 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,” the KZN Treasury said in a statement.
KZN MEC for Finance, Francois 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 professionalisation of the public service was emphasised by Ntuli.
“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.”
MEC Rodgers added: “Where there’s no compliance, there has to be consequence management.”
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.