Provinces need to spend their money


Image

MPs want provincial MECs of human settlements and heads of department to account for underspending over the last few months.

 

Chairperson of the portfolio committee on human settlements Nomhle Dambuza said on Thursday they wanted the provincial MECs and heads of department to appear before the committee and explain underspending in their departments.

 

She said that the national department of human settlements was correct in its decision not to release the last tranche of funds to the provinces because it would have resulted in fiscal dumping.

 

The national department of human settlements has withheld R4.5 billion to the provinces, said Dambuza.

 

She said the provinces must get their house in order and start spending money on projects.

 

She said it did not look like the provinces would be able to achieve their targets because of the slow pace of delivery.

 

Most provincial departments had underspent their budgets during the last three quarters of the 2012/13 financial year.

 

Dambuza said they were happy that the national department would not be transferring R4.5bn to the provinces because the money would not be spent.

 

The portfolio committee wants provincial MECs of human settlements and heads of department to come to parliament and account for this, Dambuza said.

 

She said provinces must align their delivery objectives with budget plans.

 

“What is important is the alignment of the expenditure figures with service delivery value on the ground, furthermore, the issue of capacity within the national department, provinces and the metros is crucial in terms of having capable, committed and dedicated human resources, and credible systems, not just to have warm bodies without the ability to deliver,” said Dambuza.

 

She said the committee would like to see provincial departments spending their money on the delivery of houses.

 

Xolani Xundu, spokesperson for human settlements minister, Tokyo Sexwale, said the committee had agreed that funds for March would have to be withheld because there was underspending of R1.3 billion in January and projected underspending for the year was R4.2 billion.

 

He said there were issues around provinces like the Eastern Cape and Limpopo which have accepted that they will not be able spend in March.

 

He said the director-general for the department Thabane Zulu has proposed that business plans for provinces must be scrutinised.

 

Zulu wants provincial business plans to be accompanied by operational plans.

For more details go to http://www.thenewage.co.za

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.