IN A desperate bid to spend over R550 million remaining from its budget allocations in five weeks, the provincial Department of Housing will unload millions of rands to municipalities, including Buffalo City, to fix defective houses.
Since the start of the financial year in April 2008, the department has spent only 54percent of the R1.2 billion it was allocated.
Last year, over R500 million of unspent money was taken away by National Treasury.
National Housing spokesperson Ndivhuwo Mabaya said the task team’s responsibility was to lay the foundation for a system that would enable service delivery in the provincial department.
He added that the provincial Housing Department faced challenges of capacity.
“The province is still responsible for spending the money, not the national intervention team. Ours is to help develop processes.
“I am aware that there are discussions between the MEC and the minister (Lindiwe Sisulu) regarding non-spending. In some cases the projects may not be ready to implement and therefore money can’t be used … If a province is not ready we take money to another province that is ready, but we are confident that Eastern Cape will deliver.”
Housing MEC Thobile Mhlahlo, who has been overseeing the department since August last year, vowed this week that the department would spend the remaining R552.172m in the next five weeks.
The grand plan kicks off with R100m to Mount Ayliff, Mount Frere and Flagstaff to fix defective structures.
In an apparent attempt to avoid penalties from National Treasury, the department also plans to fix houses in municipalities including Cacadu, Buffalo City and Chris Hani.
“The R552.172 million is part of the conditional grant. It is the remaining amount from the grant and it is being currently spent,” said department spokesperson Lwandile Sicwetsha .
“Rectification in Chris Hani, Buffalo City, Cacadu and other areas in the province began last year. The total cost for the rectification of these housing projects is over R100m and will come out of the remaining money in the budget.”
The rest of the money, said Sicwetsha, would be spent on flagship projects, land acquisition, emergency housing and current running projects.
Advertisements on bus shelters in various East London suburbs boast that 2.7 million houses have been built in 14years. Sicwetsha said the figure was a national one.
Last year the under-performance of the provincial department was noted by Housing Minister Lindiwe Sisulu, who sent a task team to deal with the province, identified as one of the worst performing in terms of providing housing.
DA MPL Bobby Stevenson said the “last ditch” effort at spending money was proof the task team had been ineffective. “The proof is in the underspending. Failure to spend shows they are not successful in speeding up housing delivery in this province.
“It’s time for a major shakeup of the department and an MEC that can ensure delivery. Failure of the department to spend money is destroying the housing opportunities for the people of this province.” - Daily Dispatch
Since the start of the financial year in April 2008, the department has spent only 54percent of the R1.2 billion it was allocated.
Last year, over R500 million of unspent money was taken away by National Treasury.
National Housing spokesperson Ndivhuwo Mabaya said the task team’s responsibility was to lay the foundation for a system that would enable service delivery in the provincial department.
He added that the provincial Housing Department faced challenges of capacity.
“The province is still responsible for spending the money, not the national intervention team. Ours is to help develop processes.
“I am aware that there are discussions between the MEC and the minister (Lindiwe Sisulu) regarding non-spending. In some cases the projects may not be ready to implement and therefore money can’t be used … If a province is not ready we take money to another province that is ready, but we are confident that Eastern Cape will deliver.”
Housing MEC Thobile Mhlahlo, who has been overseeing the department since August last year, vowed this week that the department would spend the remaining R552.172m in the next five weeks.
The grand plan kicks off with R100m to Mount Ayliff, Mount Frere and Flagstaff to fix defective structures.
In an apparent attempt to avoid penalties from National Treasury, the department also plans to fix houses in municipalities including Cacadu, Buffalo City and Chris Hani.
“The R552.172 million is part of the conditional grant. It is the remaining amount from the grant and it is being currently spent,” said department spokesperson Lwandile Sicwetsha .
“Rectification in Chris Hani, Buffalo City, Cacadu and other areas in the province began last year. The total cost for the rectification of these housing projects is over R100m and will come out of the remaining money in the budget.”
The rest of the money, said Sicwetsha, would be spent on flagship projects, land acquisition, emergency housing and current running projects.
Advertisements on bus shelters in various East London suburbs boast that 2.7 million houses have been built in 14years. Sicwetsha said the figure was a national one.
Last year the under-performance of the provincial department was noted by Housing Minister Lindiwe Sisulu, who sent a task team to deal with the province, identified as one of the worst performing in terms of providing housing.
DA MPL Bobby Stevenson said the “last ditch” effort at spending money was proof the task team had been ineffective. “The proof is in the underspending. Failure to spend shows they are not successful in speeding up housing delivery in this province.
“It’s time for a major shakeup of the department and an MEC that can ensure delivery. Failure of the department to spend money is destroying the housing opportunities for the people of this province.” - Daily Dispatch
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