Ramaphosa slams infrastructure budget underspending as 'treason' against South Africans

IOL News

2 days ago

President Cyril Ramaphosa highlighted the impact of inadequate spending by provinces and municipalities.
Image: Jairus Mmutle/ GCIS
The failure by provinces and municipalities to spend infrastructure budgets has been described by President Cyril Ramaphosa as treason against South Africans.
"The issue of underspending is quite an important issue, particularly when it comes to spending on infrastructure allocations such as housing, education, water, and roads.
"I actually often characterise it as treason against the people of South Africa when monies that had been allocated are not spent and are returned to the National Treasury," Ramaphosa said.
He was responding during a question-and-answer session in the National Council of Provinces in Cape Town, on Wednesday.
ANC MP Kenny Mmoiemaang had enquired about whether the government has assessed the impact of inadequate spending by provinces and municipalities on their commitments to deliver quality and essential services to communities, particularly crucial infrastructure such as housing, schools, and roads.
Mmoiemang also wanted to know whether the government has been engaging provinces and municipalities that continue to underspend and fail to adequately utilise their allocated service delivery budgets.
In his response, Ramaphosa said inadequate or slow capital expenditure has, in many ways, hampered the delivery of services that are due to the people.
"This results in delays in housing delivery, stalled infrastructure projects such as schools, water, as well as sanitation and waste management infrastructure projects."
He blamed the inability of municipalities to spend their capital projects on poor management, poor planning, weak implementation capacity, and inadequate financial and supply chain management.
Ramaphosa said there were interventions in place, such as the budget monitoring forums coordinated by the National Treasury to track in-year spending and detect low expenditure patterns at an early stage, and support programmes by the Cooperative Governance and Traditional Affairs (Cogta) Ministry.
There were also capacity-building programmes that were organised by the Municipal Infrastructure Support Agency, and the Cabinet has appointed an inter-ministerial committee to support distressed municipalities.
Ramaphosa added that Operation Vulindlela is implementing reforms to strengthen local government, and dedicated groups have been established in eThekwini and the City of Johannesburg to address challenges with water and electricity infrastructure.
"This innovative initiative is going to see great changes being introduced. These measures will help address the root causes of underspending and ensure infrastructure is maintained and expanded to improve service delivery."