This, as the MEC for Finance, Gadija Brown, is today expected to deliver the provincial mid-term budget for the 2020/21 financial year. 

Following the latest reports released by the Auditor-General and Statistics South Africa, Brown will have to address questions regarding high unemployment, municipalities' failure to produce clean audits, their escalating debts and irregular expenditures among other issues. 

The two reports, released a few weeks ago, painted a bleak picture of a province not only plagued by high youth unemployment, but a province with high irregular expenditure lacking  governance and accountability. 

Presenting the local government audit outcomes before the National Council of Provinces (NCOP), Deputy Auditor-General Tsakane Ratsela highlighted that the financial health of the province has deteriorated over the years with over 80% of municipalities in the province now in a dire financial state.

Municipalities in the province are ranked among the worst Eskom defaulters, with the cash-strapped Maluti-A-Phofung alone owing the power utility more than R4.5 billion.

Of the 23 municipalities in the province, eight audits were not completed by the cut-off date due to either late or non-submission of financial statements.

Ratsela said only three municipalities in the Free State were able to provide credible financial information at the end of the audit. 

She highlighted that none of the municipalities in the province have produced a clean audit, with its metro being of great concern.

Coupled with the adverse Auditor-General report, the province drew much attention when Statistician Risenga Maluleke released the Quarterly Labour Force Survey, which indicated that the number of unemployed South Africans now stands at 30.1% with young people and women still hard hit.

The report indicated that while the Eastern Cape has recorded the highest official and expanded unemployment rate in the country, it is followed by the Free State at 38.4%.

OFM News