Limpopo loses R235m it didn't spend

2013-03-27 11:30

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Durban - The KwaZulu-Natal Education Department has received a R175m windfall from the government, money which was taken away from slow-spending Limpopo province.

A special sitting of the KZN Legislature was called on Tuesday to pass the Second Adjustments Appropriation Bill to receive the allocation.

Finance MEC Ina Cronjé told the house that the national education department had stopped the transfer of R235.5m to Limpopo following slow spending on infrastructure there.

Cronjé said part of the money was then allocated to KZN in terms of the Division of Revenue Act. The remaining R60m was given to the Free State.

She said the money was given to the two provinces because they had demonstrated capacity to spend their infrastructure budgets.

She added that while the allocation had been made late in the financial year, through no fault of KZN, it was a clear indication that the province had developed sufficient capacity to spend its infrastructure budgets.

However, she warned that the lesson learnt from Limpopo was that the government had not issued idle threats when it warned provincial departments against under-spending.

If money allocated to budgets was not spent, it meant service delivery was being affected.

 

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