BCM fails to spend R377m of budget

Number of projects such as roads, houses in limbo due to non-spending

Buffalo City Metro (BCM) failed to spend R377m earmarked for a number of service delivery projects in the current financial year, leaving a number of projects in limbo and thousands of residents disappointed.
Housing developments, installation of a kiddies play area and recreational facilities, building and upgrading of fire stations, fixing the metro’s poor meter reading system and roads, have all suffered major funding cuts, after council approved their mid-year adjustment budget last week.
Thousands of residents from Berlin who have been waiting for a new fire station to be built in their area, have lost the R500,000 that had been allocated for the project.
BCM human settlements portfolio head Ntombizandile Mhlola said R8.1m had to be removed from the Potsdam North’s Kanana housing project after the project plan was changed from rural RDP houses to urban.
“We have to start the whole planning process, the consultants are busy with the designs now, and then we will advertise after that.
“Yes the project will take a little longer. However we have informed the beneficiaries of the changes,” said Mhlola.
Mzuvukile Sokatsi from the Mdantsane Arts Centre expressed disappointment at the news that BCM had diverted R1.3m meant for the extension of the centre.
“Yho! The refurbishment at the centre should have happened three years ago.
“The centre is small, there is no hall, and we can’t even do events there.
“When it rains the situation is worse. There was another R3m from the national department of arts & culture, but even that money was turned away. We haven’t even heard from BCM that they have taken this money away again. It’s sad, art is neglected in Mdantsane.”
R3m meant to buy graders for the metro’s poor roads was also removed, while the lighting project in the Mdantsane central business district, was left with zero allocation after R2.5m was removed from the project.
This comes as many residents complain of robbery incidents due to poor lighting at the Highway taxi rank.
BCM mayor Xola Pakati said the funds had been removed from the projects due to non-implementation or slow pace of those projects.
“A budget of R377,456,823 from the following directorates has been adjusted downwards, mainly due to projects that are not yet ready for implementation, and or moving slow.”
R173m was removed from the finance directorate, R68m from infrastructure, R67.8m from spatial planning and development, R31.8m from human settlement, R18m from economic development and agencies, R13m from municipal services, R3m from corporate services, and R1.7m from health, public safety and emergency services.
Mdantsane’s long outstanding NU2 swimming pool project received R9.9m, with Pakati saying the tender would be advertised this month.
Rural roads also received a major boost when R190m was added to the department’s initial R102m budget.
Pakati said the city manager’s office would get R39.2m, spatial planning and development R22m, economic development and agencies R11.4m, health, public safety and emergency services R5.6m, human settlements R91.4m, while municipal services department would get R17.3m.
Despite a workshop held earlier this month, councillors from the ANC and DA criticised the adjustment budget, with the DA recording its dissent.
ANC councillor Luleka Simon-Ndzele said almost three years after ward councillors had been elected into office, they were still without office furniture.
ANC ward 25 councillor Crosby Kolela said: “In this current budget we have no options. Even if we can say today we don’t approve it, we know there is no possibility that it could be changed”.
DA’s councillor Geoff Walton said his party was concerned about the repairs and maintenance expenses being cut by R68.5m to fund additional staff costs.
“No attempt was made to curtail own funded projects where service providers have yet to be appointed or to cut back on unnecessary costs like travel and catering. These should have been explored.”..

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