/ 15 April 2005

Eastern Cape govt to be investigated

Eastern Cape Premier Nosimo Balindlela has appointed a commission of inquiry into the province’s financial affairs, including maladministration, fraud and corruption in all state departments and parastatals.

The announcement follows the arrest of provincial housing minister Neo Moerane-Mamase and her husband, former agricultural minister Max Mamase, over alleged corruption.

Eastern Cape Judge Rajarithina Pillay, who is heading the commission, had six months to identify ”underlying deficiencies throughout the provincial administration”, said Balindlela.

The Eastern Cape has historically suffered from huge budget deficits, corruption and political factions. Two national government interventions have failed to stop the financial rot.

A year ago the interim management team (IMT), appointed by the national Public Service Department to probe the province’s finances, submitted a report to the provincial legislature. However, Adrienne Carlisle, of the Public Service Accountability Monitor (PSAM) at Rhodes University, said the province had failed to implement recommendations by the auditor general and IMT.

The effectiveness of Balindlela’s commission will depend on the ”depth of the inquiry as well as the administration’s willingness to implement its recommendations”, she said.

According to the PSAM, over the past eight years the provincial administration has been unable to account for R127-billion (79%) of the R160-billion allocated to it by the National Treasury.