Underspending on failing infrastructure and a lack of expertise at municipalities have become the norm
2 Augustus 2018
South Africa’s poor municipal infrastructure will continue to deteriorate because municipalities are seemingly unable to utilise their budgets within the relevant financial year.
From the answers provided by the Minister of Cooperative Governance and Traditional Affairs (Minister Zweli Mkhize) to written parliamentary questions by Dr Pieter Groenewald, leader of the FF Plus, it seems as if underspending has become the norm at municipalities across South Africa. (Questions and answers available on request).
In the previous financial year (2016/17), R1,36 billion was underspent and that brings the total for the last four financial years, since 2013/14, to more than R7 billion.
In some cases, there are valid reasons for why the budgets of certain projects where not spent before the end of the financial year. However, municipalities still forfeited an amount of more than R5 billion out of a total of R7 billion over the last four financial years because they were seemingly unable to spend the money.