/ 4 February 1999

FREE STATE FINANCES COLLAPSE

THE Free State has become the third province to be rescued by central government following the effective collapse of its own financial administration. Cabinet has invoked section 100(1)(a) of the constitution, and may now instruct the provincial government on the steps it must take meet its obligations. Finance Minister Trevor Manuel will announce the details and size of the grant, which will resemble those given the Eastern Cape and KwaZulu-Natal last year. Free State finance officials say the province needs R416-million to cover its debt and other expenditure. Health services in the province have been crippled by the shortfall, with outstanding electricity bills amounting to R66-million.