Port St Johns, central to the Wild Coast

http://www.theherald.co.za/herald/news/n12_30102007.htm

Patrick Cull POLITICAL EDITOR

THE Eastern Cape government failed to spend a total of R1,2-billion of the conditional grants it received between 2001/02 and the end of the last financial year, Finance MEC Billy Nel has revealed.

Replying to a written question from Bobby Stevenson (DA), the MEC revealed that education had failed to spend R177,3-million, health R85,1-million, agriculture R15,2-million, social development R549,9-million, local government and housing R441,7-million, roads and transport R43,1-million and sport, recreation, arts and culture R294 000.

Nel said no funds had been returned to the national treasury in 2005/06 and 2006/07 apart from R73-million by education last year in respect of the 2006/07 financial year.

He said the funds would be appropriated to departments that would be required to submit comprehensive business plans as to how they intended to spend it. This would only be done when the plans were “found to be credible”.

Reacting to the MEC‘s reply, Stevenson said it was “shocking” that R1,2-billion of conditional grant money had not been spent and was “still sitting in the provincial treasury”.

He said this meant opportunities to improve the lives of people had “simply not occurred”.

The R411-million unspent by housing and local government meant an additional 12 000 homes could have been constructed.

Stevenson said the DA believed the funds should be reappropriated as speedily as possible and that action should be taken against the officials responsible “for this consistent underspending”.