Tuesday, February 13, 2007

Eastern & Western Cape lag in using housing budget

Cape Town – The Eastern Cape has been projected to under-spend its housing and local government budget for the current financial year by some R251,7-million, according to figures presented by the national treasury to the National Council of Provinces‘ finance committee yesterday.

It is understood, however, that a special committee has been set up by the province to unlock the bottlenecks and ensure as much of the money as possible is spent before the end of the financial year.

The Eastern Cape housing and local government department has also invited established contractors to attend a briefing for the construction of houses and they will be required to “embrace emerging contractors along appropriate sub-contracting lines”.

An advertisement said the use of established contractors was “intended to ensure greater delivery at scale, as well as higher levels of quality assurance”. It also said projects had already been identified for established contractors using accelerated procurement processes.

The briefing will be held in Bhisho tomorrow.

The national treasury figures also reveal that the department spent 12,1 per cent less in 2006/07 that it did in the last financial year – R621,8-million as opposed to R707,7-million.

The Eastern Cape is the only province that is projected to overspend to that extent, with Mpumalanga, Free State and the Western Cape reporting that they expect to have small amounts of funds left.

With regard to health, the national treasury figures show that the Eastern Cape is projected to under-spend on personnel by R58,1-million and by R29,6-million on its capital budget.

The Western Cape is projected to under-spend by R123,5-million on personnel and by R22,1-million on its capital budget. The Herald

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