eThekwini under-spent by R2bn

2012-08-23 12:51

Durban - The eThekwini municipality's 2010/2011 budget performance report revealed that it had under-spent by about R2bn, according to a report on Thursday.

The budget report also showed that the municipality recently borrowed R1bn to fund infrastructure projects, the Mercury reported.

Auditor General Terence Nombembe's report reflected that eThekwini had incurred irregular expenditure of about R1.3bn in the 2010/2011 financial year.

According to the newspaper opposition parties called for better planning and management when the figures were made public on Wednesday.

The figures were released to the KwaZulu-Natal public accounts committee (Scopa) last month.

Democratic Alliance MPL George Mari said the municipality's housing budget was under-spent by 45% resulting in only half of its delivery target being met.

Minority Front councillor Patrick Pillay was quoted as saying: "Our roads are riddled with potholes and people in some areas are living in squalor.

"The level of under-spending is unacceptable and the city manager needs to explain how this is possible."

Municipality spokesperson Thabo Mofokeng said under-spending was caused by the issues of supply-chain management in the housing unit where some contracts had to be reviewed.

  • kevin.dry1 - 2012-08-23 13:00

    With 250 000 rate payers , I assume we are each going to get R8000 back in the next few days. (R1 000 000 000 /250 000).

      Alan - 2012-08-23 13:13

      No ways Kevin. It just means they haven't worked out a way to steal it yet.

      greg.botha.75 - 2012-08-23 13:27

      The money's been placed in the "steal me now" coffer!!

  • mparaya.mokopane - 2012-08-23 13:04

    We will successfully remove ZUMA come Mangaung,I will run this country My People.

      greg.botha.75 - 2012-08-23 13:26

      Ummm, keep smoking that good stuff bud...

      SNG62 - 2012-08-23 13:31

      Not only Zuma, but the whole cANCerneeds to be removed!

  • john.turner.58760608 - 2012-08-23 13:05

    Issues in supply cahnge management = ANC cadre deployment rather than the right person for the job

  • vivian.harris.73 - 2012-08-23 13:18

    Underspent by why borrow another R1bn if u got R2bn already? Where that money the go to?

  • greypatriot - 2012-08-23 13:18

    The fact that the municipality underspent the housing budget by 45% adds to the business case for a public enterprise with the mandate, organization and budget to change the informal housing and ghetto landscape in South Africa. There are probably several other municipalities that are not planning for, budgeting and building houses and services. If we add the underspent together we will have enough funds to start a new housing delivery enterprise called HOSSA (Housing Services of SA). This will lighten the responsibility of the auditor-general, the Minister of Finance and the hundreds of municipal managers who are not delivering. South Africa will have a National Integrated Housing Plan and the poor people will feel and see their world change.

      Alan - 2012-08-23 15:27

      Nice idea Patriot. Only problem is that it will be a BEE enterprise and will be run by people whose only goal will be to make HOSSA "Help Out Some Stealing Again".

  • kelvyn.davidson.1 - 2012-08-23 15:43

    They could spend some of it by reinstalling and fixing all the showers along the beach front,

  • christopher.m.lowe - 2012-08-23 15:44

    When you have idiots in charge, and deploy cadres to fill posts they can't even spell, let alone carry out, then underspends of R2bn happen. Having all the money in the world to spend (and with Durban's incredibly high rates there's plenty of cash being raked in) on much needed infrastructure (and maintenance - something the ANC just loves to overlook)doesn't help when, through Affirmative Action, BEE and irresponsible cadre redeployment, you've chased most of the dedicated, qualified people away and replaced them with idiots and incompetents. There was a time when Durban was the only debt free city council in the world. A beacon to aspire to. Fifteen short years later those assets are all gone and it even manages to clock up R1,3bn in "irregular" expenditure in a single year. Pffffftt!!

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