Eastern Cape Executive Council unhappy with departments that failed to use up allocated budgets

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Eastern Cape Premier Oscar Mabuyane. Picture: Lubabalo Ngcukana / City Press
Eastern Cape Premier Oscar Mabuyane. Picture: Lubabalo Ngcukana / City Press
  • The Eastern Cape Executive Council has raised concerns after some provincial departments failed to use all the funds allocated to them for the 2020/2021 financial year.
  • According to the council, the money was for driving progressive development to transform the lives of people and to contribute to the economic growth of the province. 
  • A total of R1.765 billion of this budget was not used.

The Eastern Cape Executive Council has raised concerns after some provincial departments failed to use all the funds allocated to them for the 2020/2021 financial year.

During a provincial executive council held on Thursday, it was said that three departments - health, human settlements and transport - contributed to the majority of underspending.

According to the premier's spokesperson Mvisiwekhaya Sicwetsha, the council was unhappy as the money was for "driving progressive development to transform the lives of our people and to contribute to the economic growth of the province". 

The council received a report stating that at the end of the financial year, provincial government departments spent R6.606 billion or 78.91% of its R8.372 billion total infrastructure budget, meaning R1.765 billion of this budget was not used.

The health department recorded an underspending of R800.118 million, human settlements R692.367 million and transport, R128.917 million.

"In respect to grant performance, as of 31 March 2021, the province spent 84.26% of the grant adjusted budget of R5.634 billion," said Sicwetsha.

"The accumulative grant underspending for the province as at the end of March 2020/2021 is R886.876 million."

Economic Recovery

Meanwhile, the council was also concerned that the financial situation in Amathole was not improving.

Sicwetsha said the council resolved that the MEC for Cooperative Governance and Traditional Affairs (COGTA) engage the municipal council and bring to their attention the implications of the current situation. 

According to the province, as of 15 February 2021, R3.206 billion of the Covid-19 Temporary Employer/Employee Relief Scheme was paid to 78 employers, benefitting 775 243 employees in the province.


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