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City of Tshwane slams RDP houses underspending claims

RDP houses.. File picture: Nokuthula Mbatha/African News Agency (ANA)

RDP houses.. File picture: Nokuthula Mbatha/African News Agency (ANA)

Published Jan 25, 2019

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THE City of Tshwane has vehemently denied accusations that it failed to spend the R381million it received from the provincial government for housing projects.

MEC for Human Settlements Dikgang Moila this week lambasted the City for failing to spend its Human Settlement Development Grant on building RDP houses.

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He said the municipality owed the department and housing beneficiaries 2783 housing units. The City had applied for its grant to be used on other projects because it lacked capacity to utilise it, he said.

But yesterday mayoral spokesperson Samkelo Mgobozi said the housing projects were implemented by the provincial Department of Human Settlements and the City.

The City had acted as implementing agent to build houses on behalf of the provincial department.

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“Upon allocation and gazetting of funds, a subsidy agreement is concluded between the City and the provincial department,” he said. Funds were allocated and gazetted annually to be appropriated on the City’s approved budget.

“In April 2018, Provincial Treasury issued a Provincial Gazette indicating an allocation of R78m to the City in respect of the Human Settlement Development Grant.”

The amount was allocated towards development of low cost walk-up units in Fort West Ext 4 and 5 - a project implemented in phases.

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But the provincial department reduced the funds via a revised gazette issued in November 2018 to nearly R23m earmarked for Hammanskraal Extension 10 units.

The underspending during the 2017/18 financial year was as a result of Human Settlement Development Grant delivery of R253m.

“Roll-over approval has since been applied for from the provincial department for Fort West Extension 4 and 5, Thorntree View, Mamelodi ERF 29355, Rama City, Hammanskraal West Extension 10 and Ga-Rankuwa Extension 10,” he said. It was recently approved and subsidy agreements signed.

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