The Portfolio Committee on Human Settlements has expressed concerns about under-spending by the Department of Human Settlements, during the second quarter of this financial year 2012/13.
The Committee is concerned that the department would loose the money if it continues with this trend of under-spending. It added that with the dire need and current demand of housing, this cannot be allowed to continue. Furthermore, the committee consider the statement by the Minister of Finance, Pravin Gordhan in his Medium Term Budget Policy Statement (MTBPS) speech very seriously on the under expenditure patterns by the departments.
Hence, the Committee has resolved to invite the Executive Authority (Minister of Human Settlements) and the respective Executive Members of Councils (Provincial MEC’s) to brief the committee as this scenario presents a “disturbing” picture.
This came as the department’s Chief Financial Officer, Ms Funaneng Matlatsi presented the second quarter financial performance which revealed that the department had not met the 50% minimum spending required halfway the financial year. Ms Matlatsi said that the department only managed to spend 40% of its budget between 1 April 2012 and 30 September 2012 and had only six months to spend the other 60%.
The report indicates that of the R25 billion allocated to the department for 2012/13, only R10 billion had been spent.
Committee members were also surprised to learn that of the 235, 605 delivery targets only 61, 465 had been achieved. The Committee could also not comprehend how a department whose services have been highlighted as one of the priorities of Government was unable to spend its “huge” budget as it believed that this budget was informed by its plans and programmes.
Chairperson of the Committee, Ms Nomhle Dambuza stated it was not understood why the department request funds yet they wouldn’t be able to utilise such funds effectively and efficiently. “Our understanding is that department requests resources based on its approved plans, strategy, capacity and systems to spend the budget. Therefore it is not understandable why it is difficult to implement such plans and strategies whereas there is such a backlog on the ground," said the Chairperson.
The department reported, that there is a meeting scheduled to discuss the provincial recovery plans together with provinces to address this under-spending, but the Committee members remained concerned because they are repeatedly told about the recovery plans which do not seem to materialise.
For media enquiries or interviews with the Chairperson, Ms Nomhle Dambuza, please contact:
Temba Gubula (Mr)
Tel: 021 403 8307
Cell: 078 735 8809
E-mail: tgubula@parliament.gov.za
