STATEMENT BY BONGINKOSI MADIKIZELA, WESTERN CAPE MINISTER OF HUMAN SETTLEMENTS, January 11 2011

WESTERN CAPE HUMAN SETTLEMENTS DEPT IS MEETING ITS RECOVERY PLAN TARGETS

It is unfortunate that the National Department of Human Settlements didn't wait for the December performance and expenditure figures - due on Friday - before issuing a statement about under-expenditure by four provinces. The picture has improved dramatically in the Western Cape since National Minister Tokyo Sexwale raised his concerns last November.

The Western Cape Department of Human Settlements disbursed R261 million or 131 percent of its target of R200 million in November, and R232 million or 101 percent of its R230 million target for December. This means that, despite only spending 64 percent of its target in October, the department disbursed 99 percent of its R620 million target for the third quarter. We have spent R1.25 billion, or 64 percent of our budget for the year.

According to preliminary figures, we have serviced 8 007 sites and built 8 218 houses. We have approved a number of new projects in the third quarter, which will assist us to accelerate this delivery in the last three months of 2010/11.

We are confident that we can spend the balance of R705 million in the final quarter of the financial year, and that it won't be necessary to redirect any of the Western Cape's grant allocation.

As I stated in my Appropriations Adjustment speech last month, we have shifted funding from projects which are experiencing problems to those with the capacity to spend, and the Grant Advisory Allocation Committee will this week finalise further shifts required to ensure that we spend our full allocation.

The national department was happy with our recovery plan to spend the balance of our budget, which we presented to MinMEC last November, and we have met our revised targets for the quarter in line with that recovery plan. It is therefore unfortunate that it has included the Western Cape in its statement about under-expenditure.

Statement issued by the Western Cape Ministry of Human Settlements, January 11 2011

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