DA Limpopo slams MEC Mohoai’s Budget Speech

LEBOWAKGOMO

The Democratic Alliance (DA) in Limpopo has serious concerns about the 2025/2026 provincial budget tabled by MEC for Finance, Kgabo Mahoai.

According to the Democratic Alliance (DA) in Limpopo, the province’s 2025/2026 budget speech, tabled by MEC for Finance Kgabo Mahoai, failed to address challenges faced by Limpopo residents.

Mahoai delivered his budget speech on Tuesday 25 March 2025 at the Lebowakgomo Legislature.

Jacques Smalle, DA Spokesperson on Provincial Treasury in Limpopo, described Mahoai’s budget speech as the communal slaughtering of a cow, where a skilled butcher ensures every part is put to good use.

“But the flaw in this analogy is glaring. Years of bad and reckless ANC governance have left the cow, our provincial fiscus, emaciated, with little meat and no fat, and the butcher’s knives, our government’s delivery capacity, blunt and ineffective,” he said.

Smalle indicated that while Mahoai acknowledged the “difficult circumstances” faced by the province, knot of growing fiscal constraints and economic stagnation, he failed to admit that the root cause lies in decades of poor governance, corruption, and outdated, ideologically rigid policy choices made by his party, the ANC.

“Although there is broad agreement within the Government of National Unity (GNU) that urgent, sustained economic growth must be a top priority, and that structural barriers to growth must be removed, the DA in Limpopo has little confidence in the ANC-led provincial government and its municipalities to deliver on this commitment,” explained Smalle.

Smalle indicated that the party is concerned that the ANC-led administration continues to bail out failing state-owned entities.

During the budget speech, Mahoai allocated an additional R200 million to Great North Transport, despite its continued operational collapse.

A further R152 million is proposed for Gateway Airport Authority Limited (GAAL), despite a long-promised turnaround strategy that has yet to materialize.

R1 billion is earmarked for the Road Agency Limpopo (RAL), which according to Smalle, is an SOE that has overseen the deterioration of the provincial road network.

“RAL will now focus only on new road development, while the Department of Public Works, Roads and Infrastructure, which itself has a poor project implementation record, will be responsible for maintenance,” Smalle said.

The Department of Education, despite receiving the largest budget allocation, is set to forfeit R200 million in unspent conditional grant funding the current financial year.

A total of R100 million is being allocated to revive the long-defunct Lebowakgomo Broiler Project, a 20-year-old initiative that has yet to produce a single chicken.

And while COGHSTA is allocated nearly R8 billion, municipalities continue to preside over the collapse of our towns, undermining the well-being and prosperity of the communities they are meant to serve.

“As the DA, we had hoped for a more clinical approach one that culled excesses and deadweight, and created leaner, more efficient delivery mechanisms. This is particularly critical given that 98% of Limpopo’s income comes from equitable share and conditional grants, which are set to decline over the 2025 MTEF,” explained Smalle.

However, Smalle said they acknowledge the reformatory tone in the MEC’s speech, particularly his call for the increased use of Public-Private Partnerships (PPPs).

“We will watch closely to see whether provincial and local government structures take these calls seriously. We need a larger, faster-growing economy to generate the fiscal space required to meet our developmental goals. However, the DA in Limpopo remains unconvinced that this ANC-led administration has the capacity, credibility, or political will to implement the structural reforms and governance improvements required,” informed Smalle.