KZN Agric department underspends by R93 million despite crisis conditions

24 August 2016

The DA is alarmed by the finding that KZN’s Agriculture Department underspent its annual budget by a massive R93 million during the last financial year.

This as the province suffers under severe strain as a result of ongoing drought conditions, with food security under threat and emerging farmers struggling to get out of the starting blocks.

The underspend figure is from the recent Legislature unaudited close out reports, which also reveal that the department underspent its COE by R3.6 million and its capital infrastructure by R27.7 million. This relates to the construction of drought relief interventions such as boreholes and stock watering dams and dip tanks which progressed at a slower rate than anticipated.

Treasury has also indicated that the under-spend is a result of several factors;

- The department’s failure to fill funded vacant posts as well as delays in the procurement of state vehicles

- The Microsoft migration process from Novell to Microsoft not being finalised due to SITA not being able to procure the server on time

- Farming supplies such as livestock fodder and animal medicine ordered but not delivered or paid for by year-end

- Limited farming activities by the Communal Estates, as a result of drought, as well as slow progress of the Nyonende Hatchery project

- Delays in terms of the Municipal Support Programme, with invoices being withheld as a result of unsatisfactory service delivery by service providers

- Delays regarding the Infrastructure Crack Team which was not operational for the first half of the year due to SIU investigations, resulting in several projects being delayed.

This is a department marked by delays, a lack of will and a generally lethargic attitude. This while it has the potential to be a key economic driver within the province. Under-expenditure of almost R100 million is therefore completely unacceptable.

The DA will request that the new MEC, Themba Mthembu appear before the provincial Agricultural portfolio committee to present a full report on this matter and ways in which he intends to prevent this occurrence in the future.  We also expect him to outline his vision and implementation plans for this department.

Issued by Sizwe Mchunu, DA KZN Spokesperson on Agriculture, 24 August 2016