Daily News

Municipali­ties not spending optimally on infrastruc­ture

- BHEKI MBANJWA bheki.mbanjwa@inl.co.za

KWAZULU-Natal Finance MEC Ina Cronjé has expressed concern over the continued failure of municipali­ties to optimally spend their capital budgets, which cater mainly for infrastruc­ture projects.

She warned that if the Municipal Infrastruc­ture Grant was not spent it would be withheld by the National Treasury.

“There is a dire need for proper planning on capital projects at local government level. Not only does underspend­ing deprive our people of service delivery, but it also exacerbate­s current backlogs.”

Cronjé was tabling the municipal budget performanc­e review for the second quarter of 2012/13 yesterday.

The report revealed that almost all the districts in KZN, including the eThekwini Metro, had spent below half of the total capital budget by the end of the second quarter of the 2012/13 financial year.

Only the uMzinyathi district was an exception, spending 73 percent of its capital budget. Districts such as uMgungundl­ovu only spent a paltry 19.8 percent (R150 million) while uThukela spent 14.6 percent (R68.3m).

The eThekwini Municipali­ty only spent 27 percent (R1.4 billion) of its R5.3bn capital budget.

Of the total spent by eThek- wini on infrastruc­ture, the bulk (R414m) was spent on housing, R339m was spent on water and waste water management infrastruc­ture, R207m on electricit­y infrastruc­ture and R260m on road transport.

Cronjé said many municipali­ties cited supply chain management processes for underspend­ing, but there was no need for these to cause delays.

“They (municipali­ties) simply have to plan better and allow enough time to follow all due processes. A budget without an implementa­tion plan and vice versa remains a dream and is bound to fail”.

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