POLITICS

Close out reports show R605m underspend by govt departments – DA KZN

Party says when it comes to financial management the ANC is unable to find the capacity to deliver to the people

Close out reports show R605m underspend by government departments

17 August 2016

KZN’s unaudited 2015/16 departmental budget close out performance reports once again confirm that when it comes to financial management and budget implementation the ANC staggers from one extreme to another, unable to find the capacity to deliver its mandate to the people, unable to create jobs and stimulate economic growth and ultimately improve the lives of all it citizens.

This as the province reports a massive under expenditure of more than R605 million for the past financial year with the main transgressors being Education with R274 million, Social Development with R98.9 million, Agriculture with R93 million and CoGTA at R63 million.

Only Health over-spent against their Compensation of employees budget (by R167.216m) mainly due to an under-estimation of the costs of the housing allowance adjustment, as well as an increased take-up of the allowance following the increase. The increase in this allowance formed part of the 2015 wage agreement

The DA finds it inexcusable that budgets allocated to departments are not being spent while unemployment rates increase and growth rates stagnates.  

These figures are proof that KZN’s ANC- led government lacks the political will and hunger to drive and improve the economy of the province through its allocated departmental budgets.

An indication that certain departments are not capable of effective governance is the R274 million underspent on salaries in the province.  While a moratorium has been placed on vacant posts given the current economic climate, some departments failed to comprehend that Treasury put in a measure to make application for the filling of vacant posts.

The hearings were also a clear indication that many departments were unable to implement their mandate due to critical posts remaining vacant.  It should then come as little wonder that KZN managed to underspend almost R120 million rand on infrastructure projects and almost R70 million on conditional grants. 

The budget hearings also highlighted continued challenges with Supply Chain Management within certain departments.  This is a recurring nightmare that continues to plague the province with even with Treasury unsuccessfully trying to capacitate departments.  The result, delays in project implementation, cost escalation, tender irregularities and in certain cases the appointment of incompetent contractors.  This is a clear case of failing the basics, with many departments openly admitting to poor fiscal controls and currently undergoing departmental re-engineering.

Other shortcomings highlighted included provincial departments being compelled to use the Department of Public Works as the implementing agent of choice when under- taking construction and maintenance work. This has led to departments playing the ‘blame game’ and accusing Public Works of causing delays in project implementation which they claim have led to under-expenditure.

The people of KZN can no longer believe that the ANC has the capacity to turn KZN into a well-oiled and economically progressive hub. The DA has proven time and time again, where is governs it governs well.

The voters of South Africa have made it clear at the polls on the 3rd of August that they are ready for change.

Issued by Francois Rodgers, DA KZN Spokesperson on Finance, 17 August 2016