KZN depts urged to spend conditional grants fully

2014-07-09 00:00

KWAZULU-NATAL provincial departments were yesterday urged to spend their conditional grants fully because failure to do so results in the province forfeiting the money back to National Treasury.

This was the stern warning from the provincial head of Treasury, Simiso Magagula, as his department presented the 2014/15 medium-term expenditure framework (MTEF) budget to the finance portfolio committee at the legislature yesterday.

The report indicates that KZN under-spent on conditional grants by a massive R67,444 million at year-end.

Magagula said the province could not afford to lose the conditional grants because that would impact on service delivery. He stressed this point because after the 2011 census, KZN experienced budget cuts from National Treasury due to a decline in population figures here, with more money going to Gauteng and Western Cape.

KZN DA leader Sizwe Mchunu asked if the under-spending from various departments could have been as a result of austerity measures put in place by Treasury when the 2013/14 budget was planned. Magagula denied this.

He insisted that departments should not over-spend but have been instructed to spend their budgets fully.

Meanwhile, MEC for Finance Belinda Scott said she had requested that she be fully briefed by all departments on the forensic investigations that had not been resolved and their progress.

“We want to prosecute on some of the ancient forensic investigations in which we lost hundreds of millions of rand,” she said.

She added that she had approached KZN Judge President Chiman Patel to make courts available to prosecute those who are implicated in the forensic investigations.


Who overspent on their


• The biggest culprit was Health, which overspent by R312,2 million, followed by

• Social Development at R14,297 million,

• Transport at R9,106 million,

• Arts and Culture by R7,66 million and

• Economic Development and Tourism at R236 000.

Which 11 departments under-spent on their budgets?

• Provincial Treasury by R76,43 million,

• The Office of the Premier by R63,319 million,

• Public Works at R43,478 million and

• Agriculture, Environmental Affairs and Rural Development at R39,647 million.

• Education by R37,225 million.

The report indicates that conditional grants allocation for KZN was under-spent by R67,444 million.

• The Llima/Letsema Projects (agriculture related) under-spent by R23 million,

• HIV/Aids (Life Skills Education) by R29,286 million,

• National School Nutrition Programme grant under-spent by R15,766 million,

• FET College Sector grant reflects under-spending of R38,743 million,

• Technical Secondary Schools Recap grant was under-spent by R7,553 million and

• National Health Insurance grant under-spent by R9,129 million.

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