/ 24 August 2000

MASSIVE DEBT WRITE-OFF FOR FORMER HOMELANDS

A NEW bill has been tabled in Parliament that will write off the R4.1bn debt incurred by the former homelands and possibly bury forever unanswered questions on unauthorised spending. The Finance Bill which was approved by the finance portfolio committee, will allow the former homelands to start will a clean slate. The Treasury said that the former apartheid territories financial statements were in such disarray that it was impossible to resolve all the problems. Apparently there were 203 cases of unauthorised spending for all four homelands and six self-governing regions. Venda and Gazankulu accounted for the largest proportions. However the Treasury did say that efforts would still be made to recover lost cash even though it did considered a near impossible task. The bill also allows for government to make provision for other unauthorised expenditure made up mainly by State departments. However this amount estimated at R148.9m, will have to be repaid.