Committee supports decision to reallocate housing funding
18 Feb 2011Parliament’s Portfolio Committee on Human Settlements has welcomed the decision by the Minister of Human Settlements to re-allocate funding from under-performing provinces to those who demonstrated capacity to spend by the of the financial year.
Earlier this month, the department confirmed to Parliament that R263 million would be transferred from the Free State and R200 million from KwaZulu-Natal to the Northern Cape (R182 million) and Limpopo (R131 million). The remaining R150 million has been allocated to the National Rectification Programme. The rectification programme is aimed at rectifying all the defective houses.
This is in accordance with Section 18 (1) (a) of the Division of Revenue Act of 2010 which makes provision for the re-allocation of a portion of an allocation that will not be spent, provided it is utilised within the current or following financial year.
Whilst the Committee acknowledges that ideally provinces should be able to fully utilise funding allocated to them, the reality is that when provinces are unable to deliver in terms of their business plans, it is acceptable that funding instead be re-directed to better performing provinces. In this way, instead of requesting rollovers or returning funding to the National Treasury, the R463 million will remain in the housing delivery process.
The committee will continue its oversight responsibility over the human settlements sector, and closely monitor the ability of provinces to spend money appropriated by Parliament. The Committee would like to reiterate that it is important to ensure that where funding is re-directed, such provinces should demonstrate, through their business plans, that they are indeed able to spend the money by the end of the relevant financial year. The Committee, therefore, voices its support for the Department of Human Settlements, and urges the department to closely support provinces where necessary.
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Source: Parliament of South Africa
Issued by: Parliament of South Africa
18 Feb 2011
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