R100 million underspent on NW Human Settlement Development while 32 housing projects are abandoned

10 March 2021

The Democratic Alliance (DA) in North West has noted the MEC for Finance, MotlalepulaRosho’s delivery of the third adjustment budget in the North West Provincial Legislature (NWPL) yesterday.

The MEC announced that the R100 million Human Settlement Development Grant will be re-allocated to other provinces, due to the Department of Cooperative Governance, Human Settlements and Traditional Affairs’ (COGHSTA) non-compliance to reporting requirements.

It is no secret that the Department has been battling to address the housing and title deed backlog. Their consistent failure to decisively deal with substandard work by contractors left several housing projects, as seen in Toevlug and Kanana, incomplete.

The DA submitted written questions to the MEC for the Department of COGHSTA, MmolokiCwaile, on housing projects in the province, to which he responded that 32 projects have been blocked or abandoned.

The Provincial Government managed to underspend a further R199 million due to Covid-19 restrictions. R20 million will be redirected to address the Department of Public Works’ overspending on rates and taxes and the remaining R179 million will be made available to Departments who present implementable projects in the 2021/22 financial year.

In the face of an ongoing technical recession, the DA will be expecting the incoming 2021/22 budget to allocate funds towards the stimulation of economic growth.

Issued by Freddy Sonakile,DA Chief Whip in the North West Provincial Legislature, 10 March 2021