12% of metro capital budget spent by September 30

OCTOBER 24, 2014

Nelson Mandela Bay had spent 12% of its capital budget by the end of the first quarter of the current financial year, according to a report submitted to the Budget Performance Monitoring Forum.

This is 1% higher than projected expenditure and means the metro had spent just less than R159-million of its R1.34 billion capital budget by the end of the first quarter of 2014/15.

Three directorates, including Economic Development, Tourism and Agriculture and Strategic Programmes had not spent any part of their capital budget.

The report shows that at the end of the first quarter the metro had spent 23% or just less than R1.9 billion of its operating budget of R8.34 billion against a projected spending of 25% or R2.1 billion.

A report from Special Projects reveals that nothing had been spent of the just over R11 million allocated for an SMME hive.

The report states that 99% of all officials in the directorate work on a month-to-month contract basis that will be expiring at the end of this year.

It says that a further challenge is “lack of leadership,” as no one has been appointed to act as executive director.

With regard to European Union-funded projects for the Motherwell Urban Renewal Programme (MURP), the report says application to roll over R6.2 million was made to the Budget and Treasury Committee at its last meeting on September 16.

Of the 13 MURP projects listed in the report that are to be funded by the EU grant, money has only been spent on one, Youth Development, with all but R6 000 of the R181 000 allocation for this spent.

The Economic Development, Tourism and Agriculture (EDTA) directorate’s report shows that while nearly R163 000 has been committed nothing of the budget of just over R9 million for the Fountain Road Development in Walmer has actually been spent.

The report says that City Manager Mpilo Mbambisa approved the appointment of consultants for the development in August and they have now been briefed and the project details have been discussed. It adds that it is expected that the project will now go out to tender in January next year. - metrominutes