The affordable education loan option
Cape Town - The city has rolled over R162 million from last year’s R6.2 billion capital budget to this year because of departments underspending and projects not being completed on time.
On Wednesday, the council debated and voted for the adjustment budget with the R162m roll-over taking this year’s capital budget to R5.6bn.
The DA came under heavy attack by opposition parties for underspending but the city said only an insignificant amount of 2.2 percent of its previous budget was rolled over.
The city said it had spent 92.9 percent of its R6.2bn capital budget the last financial year, lauding it as the highest capital budget spend in the country for metros. The city says it also recorded 5 percent in savings from last year’s budget.
Mayor Patricia de Lille said the roll-over of R162m was because of unspent capital in the previous financial year and additional grant funding.
Some of the reasons for projects not being completed were given as poor contractor performances and contractors being liquidated.
De Lille said the budget amendments would not have a detrimental impact on the provision of basic services.
On grant funding, De Lille said there had been an increase of R55.7m in the urban settlement grant for the acquisition of land for future developments and informal settlement upgrades.
Opposition parties blasted the city’s spending, saying it was failing to address critical social issues such as crime, annual flooding and housing.
Leader of the ANC in the council, Tony Ehrenreich, said: “There is no shortage of promises in this city, but there is a shortage of delivery to the people who need it most. There is no doubt that this is an incredible city, it’s always been, but it’s not something the DA can claim. If we look at the problems under the DA, the city had the highest number of protests in the country.
“The DA is inept and unable to deal with the challenges that exist and address this challenge of the tale of two cities.”