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Tshwane loses millions due to underspending of infrastructure funds

The Tshwane Metro’s latest progress report on grants and subsidies for the period ending 30 June exposes serious failures in the spending of development funds.

Even though an effort is made to paint a positive picture with summary tables, large amounts intended for basic services such as safe drinking water, sewerage systems and roads remain unspent or are forfeited, while communities continue to suffer.

The Metro’s failure to complete basic processes on time has resulted in the National Treasury (NT) reclaiming R155,4 million in development funds.

Local projects reveal the extent of the problem:

• Tshwane’s public transport budget was cut by R224 million (42,7%) due to persistent underperformance. Of the funds that were received, a further R24 million (8%) was not spent.
• R7,089 million was allocated to roads in Hammanskraal (Mfumo Street), but performance stands at R0,00 (0% spent).
• Water and neighbourhood networks in Mamelodi Extension 11 stand at 0% expenditure (R901 090 unutilised). The Parkmore Reservoir is at 55% expenditure, with 45% (R6,81 million) remaining unspent because the contractor abandoned the site.
• Sewer pipe replacements in the North, the CBD and Pretoria West ground to a halt after contracts expired and new tenders were cancelled.
• Mabopane Block A (roads) achieves only 3% performance (97% unspent), while Stinkwater flood control stands at just 29% expenditure (71% unutilised).
• A staggering R14,2 million (48,3%) of the HIV/Aids budget was not spent, because local educators were not contracted on time.

The Freedom Front Plus (VF Plus) refuses to simply “take note” of and adopt such reports while residents’ rights are trampled.

The Freedom Front Plus demands that disciplinary steps be taken against the officials responsible for the loss of R155,4 million because statutory notices were not issued on time.

A financial loss of this magnitude has to be accounted for.

In addition, the party calls for urgent investigations into tenders signed at the last minute as well as officials who allow contracts to expire. Such practices undermine good governance and expose the city to needless risks.

The Freedom Front Plus, furthermore, insists that contractors who abandon work should not only be fined, but also blacklisted so that they cannot benefit from public funds again.

It should be guaranteed that all unspent funds are safeguarded through valid rollover applications so that tax money is not lost and projects are not needlessly delayed.

On 4 November, residents have the opportunity to oust the ANC and its cohorts, and elect an administration that spends Tshwane residents’ hard-earned tax money wisely and effectively.

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