Parliament, Wednesday, 16 October 2024 – Underspending and redirecting of conditional grants by provincial and local governments is concerning and must be discouraged.
National Treasury appeared before the Select Committee on Appropriation today to give the committee an update on spending patterns of different sectors in the provinces on their conditional grants and reasons for underspending.
National Treasury cautioned the committee that unspent transfers in provinces were not ideal as government incurs borrowing cost when these funds are unspent. National Treasury further said the Welisizwe Bridges Programme is a cause for concern as it showed no performance in the first quarter and that underperformance was identified in the previous 2023/24 financial year as well.
Committee members were troubled by the continued underspending on human settlements, especially in provinces like Northern Cape, Western Cape, and Gauteng. The situation in the Northern Cape is especially dire, as the province struggles to transition from informal to formal settlements. Some residents have been on the housing database for nearly 15 years, they are waiting for decent houses.
The Chairperson of the committee, Ms Tidimalo Legwase, expressed her disappointment. She said: “As public representatives, we want to see value for money. These funds must have a tangible impact on people's lives; they cannot remain unspent without a reasonable explanation.”
In addition to housing concerns, members also voiced apprehension over underspending on the HIV and AIDS Life Skills grants. This underspending is especially troubling given the critical need for ongoing health education and intervention programmes aimed at mitigating the impacts of diseases.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON APPROPRIATIONS, MS TIDIMALO LEGWASE.
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