Mayor: Violence in areas delays projects

Valhalla Park, halted at 90% completion, was to accommodate 777 beneficiaries

MAYOR Patricia de Lille says a percentage of the city’s capital projects has been delayed due to “community dynamics or violence in some areas”.

Tabling the adjustments budget before the council yesterday, De Lille said the City of Cape Town had achieved a 92.8% spend for the last financial year.

Earlier this month, the city said it had halted a R40 million housing project in Valhalla Park after gangsters had intimidated contractors at gunpoint and held them hostage. The project, which had been halted at 90% completion, was to accommodate 777 beneficiaries.

“In terms of our financial performance, again we have performed well on implementation because indications are that for the 2016/17 financial year, we achieved a spend of approximately 92.8% of our R6.4 billion capital budget,” De Lille said.

This was up 89% from the previous year, and just over 80% on the 2013/14 financial year, she added.

“The capital budget for 2016/17 was also the largest that we’ve had over the past five years,” De Lille said.

“The city managed to raise the bar with its financial performance and this was as a result of highly skilled, passionate and dedicated members of staff and project managers.

“We have worked hard to overcome some project management challenges over the past year and it is paying off.”

The August adjustments budget mainly provided for carry-over commitments from 2016/17, she added.

The total roll-overs requested for carry-over commitments amount to R177m, while the unforeseen and unavoidable expenditure equates to R6.5m for the 2017/18 financial year.

De Lille said R6.5m would be used for coastal structure rehabilitation, funded from the external financing fund for 2017/18.

“Our financial performance shows that our investment and maintenance of infrastructure is solid, that our service delivery projects are on track and that the money is being spent where it is needed,” De Lille said.

“It demonstrates that we have the expertise and good governance structures to enable us to spend the money appropriately in the first place.”