LEDET allocated R2.2 billion

Limpopo Department of Economic Development, Environment and Tourism has been allocated R2.2 billion following the re-tabling of budget.

R431 million of the budget goes towards administration, R1.2 billion for integrated economic development services and R419 million is channelled to environmental affairs, while R138 million will go to tourism.

The Limpopo Development Agency (LEDA) gets R1.1 billion, Limpopo Tourism Agency (LTA), R102 million, and Limpopo Gambling Board receives R72 million.

Speaking during the re-tabling of the budget, MEC Tshitereke Matibe, said while progress is being made in repositioning of the department’s entities to deliver their mandates, they face challenges stemming from historical mismanagement.

“Great North Transport (GNT) is a prime example, requiring our dedicated attention. Despite three bailouts over the past decades, GNT’s performance has deteriorated due to years of mismanagement and inefficiency. To prevent this collapse, we’ve implemented stringent measures,” stated Matibe.

He further said that notably, on May 29, the GNT board suspended the CEO, COO and CFO pending investigations into governance lapses, operational inefficiencies and accountability.

“We were dismayed to discover that GNT had withheld employer contributions to employee pension and medical funds since December 2024, causing embarrassment to the provincial government. We apologise to the people of Limpopo, GNT employees and their families for this lapse,” added Matibe.

The MEC informed that to mitigate the crisis, they borrowed from LEDA budget to settle outstanding liabilities and prevent termination of pension and medical aid funds.

“We will continue to work aggressively towards turning GNT around and ensuring it delivers on tis mandate as an efficient public transport company in Limpopo,” assured Matibe.

He pointed out that the department is proposing that R93 million of the existing R309 million capital grant, which was originally set aside for procuring 120 buses, be reallocated to address pressing operational needs.

“These include the payment of pension and medical fund obligations, addressing legacy pension gaps from 1999 to 2009 and installing fleet management systems. GNT has adopted a new, forward-looking operational model that blends new, refurbished and leased buses. Early revenue data from leased buses confirms this is a more viable path, shifting maintenance risks away from GNT and enabling greater efficient and focus on service delivery,” remarked Matibe.