R1.1 billion goes unspent while small-scale and cannabis farmers struggle

Chairperson of Scoa, Sfiso Buthelezi has called for small-scale and emerging farmers to be prioritised. Picture: Waldo Swiegers/Bloomberg

Chairperson of Scoa, Sfiso Buthelezi has called for small-scale and emerging farmers to be prioritised. Picture: Waldo Swiegers/Bloomberg

Published Sep 14, 2022

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Johannesburg – The Department of Agriculture, Rural Development and Reform briefed the standing committee on appropriations (Scoa) on the fourth quarter underspending for the 2021/22 financial year.

The committee was concerned that the department continued to underspend on its appropriated funds. An amount of R1 124bn was unspent, which it attributed to slow spending on support to farmers through the Presidential Stimulus Initiative, as well as other programmes.

The department said among other challenges, the late submission and payment of invoices contributed to underspending.

The committee registered its disappointment with the department’s performance and its qualified audit outcomes and disclaimers. The committee said appropriated money should be accounted for, as it belongs to the people of South Africa.

Chairperson of Scoa, Sfiso Buthelezi, said: “This committee can reject the budget in its totality if we get the feeling that responsible people are not taking care of resources the way they’re supposed to.”

The committee was also concerned that the department attributed some of its underperformance to the participation of women, youth, and people with disabilities. The committee said the department should have a gender-sensitive budget dedicated to women and youth.

The committee called for support for rural and emerging farmers to be prioritised and noted that they should be assisted with acquiring water-use licences. Other departments, such as Water and Sanitation, should be brought on board to assist.

The committee noted the challenges faced by emerging and small-scale cannabis farmers, who are struggling to penetrate the market.

Buthelezi said once public money has been allocated to the department, services should be delivered to people.

Ploughing money into the economy should stimulate economic growth, assist small farmers and farmers in general, and create employment opportunities in the agricultural sector.

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