Limpopo fails to spend R500 million Human Settlements Development grant
29 October 2014
The Limpopo Provincial government has once again failed to spend its allocated Human Settlements Development grant of R500 million for the 2013/14 financial year due to "capacity" constraints. This was relayed by the Minister of Human Settlements, Lindiwe Sisulu, yesterday at the Human Settlements Portfolio Committee briefing on her 100 days in office.
Last year, the Limpopo Provincial Department of Human Settlements returned R644 million to National Treasury, bringing their total returned funds to over R1 billion over two years. This department has recently emerged from financial administration and thus it seems the supposed turn-around strategy took a turn for the worst.
Urgent action is needed to put plans in place for Limpopo to spend the grant it will receive next year. We cannot allow this province to underspend its grant year after year, even as the people in the province do not have access to the housing they need.
According Section 2 (c)(d)(e) of the National Housing Act of 1997, Minister Sisulu, must take action to monitor the performance of provincial departments and budgetary goals set against housing delivery and assist the department to develop administrative capacity to exercise their duties and manage their own financial affairs.