LIMPOPO – THE Capricorn District Municipality has terminated poor performing contractors and banned them from future appointments in a bid to prevent future budget underspending.
Municipal spokesperson, Moffat Senyatsi, recently announced that this was one of the corrective measures being taken after engagements with the department of water and sanitation to ensure 100% spending of yearly conditional grants.
“This comes after the municipality underspent a portion (R130 million) of the municipal infrastructure grant (MIG) in the financial year 2013/14. In the same financial year the municipality spent 89% of its MIG and 65% of all other conditional grants,” Senyatsi said.
Despite requirements by Sections 21 and 27 of the Division of Revenue Act (Dora) to return unspent MIG to national treasury, Senyatsi said no portion of the grants had been surrendered to treasury.
Senyatsi said the reasons for underspending included unforeseen delays in appointment of contractors due to late project registration from the department of water and sanitation, poor contractor performances and delays with the submission of technical reports to the department of water and sanitation department due to low yielding boreholes and water source development challenges.
Senyatsi said the corrective measures were already bearing fruit.
“R252 million is already committed for MIG expenditure in 2014/2015 and R 259 million MIG allocation is also committed for 2015/16 financial year.”
He said the municipality was currently engaging the department of water and sanitation and cooperative governance, human settlements and traditional affairs to commit the 2016/17 allocation as indicated in the Dora.
“The municipality remains committed to perfecting finance management system especially in the area of supply chain management; and move with speed to implement infrastructure projects such as water, reduce backlogs and improve the lives of people of Capricorn,” Senyatsi said.
He said the municipal public accounts committee was also redoubling its efforts to complement the audit committee and boost internal controls and financial reporting.
