Public Private Partnerships and improved governance to accelerate delivery

26 March 2011

Mpumalanga Department of Finance hosted a Public Private Partnership (PPP) seminar on infrastructure development in Mbombela on Friday, March the 25th, 2011.

The PPP seminar was attended by officials from National Government, provinces of Mpumalanga, Limpopo and KwaZulu Natal, state owned enterprises (SOEs) and other public and private institutions.

The main aim of the seminar was to give all stakeholders an opportunity to share best practices in order to accelerate service delivery, with specific focus on infrastructure for health services in the province.

In her address to the seminar, MEC for Finance, Mrs Pinky Phosa said public private partnership is one of the quickest ways to accelerate quality service delivery in the modern economies.

“Public Private Partnerships creates a dynamic catalyst for funding, skills development, transfer and promotion of strategic investment into the provincial economy.

The three tenants of the legal framework for public private partnership, by which all projects are tested, namely: affordability, value for money and risk transfer are of utmost importance for sustainability of the resultant infrastructure in the province”, said the MEC.

She said the Province is currently looking at different models to address the infrastructure challenges in the health, education and road sectors, adding that these will lead to improved expenditure on infrastructure grants.

“In the recent past we have witnessed true democracy in action, with schools being built, houses constructed and health care infrastructure erected close to where our people live.

The budget that was tabled also signify that the project of building a vibrant and economically sustainable nation is on course”, MEC Phosa said.

Earlier in the day during the post budget stakeholders briefing, the MEC emphasised the importance of sustaining partnerships in “all our efforts to grow a job creating economy”.

She said different sectors have a role to play in helping to reduce unemployment, poverty, inequality and simultaneously produce decent jobs and sustainable livelihood.

She added that it is through partnerships that the financial management side of the legacy projects can be sustained and consequently become a living testimony of the change that this government seeks to make, which is to change the face of the communities through development of areas where they live.

“Provincial Treasury, with the assistance of the Infrastructure Delivery Improvement Program technical assistants, will continue to support the infrastructure departments in improving the planning and delivery of infrastructure in the province”, said the MEC in her closing remarks.

Meanwhile, the Department of Finance has been allocated an additional funding to assist in improving financial governance in schools and among the social sector beneficiaries of government grants.

Addressing the legislature during the tabling of the Mpumalanga Appropriation Bill, MEC Phosa said R7.5 million was set aside in order to support the Department of Education and Social Development in improving governance issues.

This intervention seeks to ensure that withholding of the necessary grants to the non-governmental organizations (NGOs) due to non compliance with the requirements for submission of audited financial statement is something of the past.

Furthermore, the funding is intended to support the Department of Education in improving governance at the school level.

“The provincial government is determined to ensure that its governance systems continue to support the agenda of accountable service delivery”, MEC Phosa said.

The MEC added that the effectiveness of governance processes largely depends on the organization’s culture, which includes compliance with legal and regulatory rules, satisfying the expectations of society, providing overall benefit to society and reporting fully and truthfully to the stakeholders and general public to ensure accountability for our decisions, actions, conduct, and performance.

Included in the R216 million 573 thousand allocated to Department of Finance for the financial year starting 1 April, is R5 million earmarked for support and capacity building to municipalities.

For more information, contact:

Letshela Jonas on 013 766 4243 / 079 500 0154 or Joseph Mkhonto on 013 766 4162 / 082 627 1750
Issued by Communications, Department of Finance, Mpumalanga Provincial Government