Premier Phumulo Masualle did some tough talking yesterday on the government’s failure to pay suppliers on time, as well as on the general state and potential of the province’s economy.
Masualle was replying to the debate on the State of the Province Address (Sopa) he delivered last Friday.
On Wednesday opposition parties attacked Masualle’s administration for its failure to stimulate the provincial economy and for failing to pay suppliers, which has been blamed for some time now as one of the reasons businesses in the province collapse.
The premier yesterday said the biggest problem was that a “weakness” in the system meant there were no consequences for late payment.
Several departments in the province continue to flout the rule that payment of suppliers should be within 30 days.
Masualle said this had to come to an end, and promised that there would be tough action on those who failed to comply.
Masualle promised that his government would work hard to create a conducive space for SMMEs to thrive “in stature and size”.
He promised strict monitoring of the provincial government’s decision that 50% of government procurement of goods and services should be conducted in the province.
Masualle said contracts that exceeded R30-million had to have 30% of the business going to local participation.
There would be no “compromise”.
He said his government was alive to the potential of the ocean economy to accelerate economic growth in the province.
However, he did not elaborate on plans his government might have to unlock this potential.
Masualle expressed concern that the province was lagging in exploiting its full potential in tourism.
Neighbouring provinces Western Cape and KwaZulu-Natal were far ahead.
He spoke glowingly of the development of the N2, which would open access to the province’s “beautiful” coastal areas and inspire more tourists to flock to the Eastern Cape.
He said the most critical component in driving the Eastern Cape economy forward and creating employment was the auto sector which was the second largest employer after the state.
“But also critical in the auto sector is the imperative of transformation that will open up value chains for local participation.
“And this will happen with cooperation with all the auto manufacturers in our province,” he said.
Masualle warned that the province needed to get out of its “Big Brother syndrome” and start focusing on what was unique to it, particularly agriculture, in order to grow its economy.
He ended by telling opposition parties that his Sopa speech was “realistic and objective,” and that progress had been made although a lot more still needed to be done.
“But any constructive criticism in pursuit of the development of our province is always welcome,” he said. — zingisam@dispatch.co.za