Mayor Mondli Gungubele said that though the underspending was a major concern, it was an improvement on the previous term.
The metro says that this information is not completely correct.
Acting metro spokesperson Themba Gadebe says in terms of the Division of Revenue Act, the Gauteng Province, on an annual basis announces an amount of grant funding that all municipalities will receive to implement housing programmes.
Gadebe says for the 2013/14 financial year an amount of R191-million was announced for transfer to the Ekurhuleni municipality.
He says that, however, by March 31 this year, the Gauteng Provincial Department of Human Settlements had not transferred this amount to the municipality.
“The money would have been spent for the construction of houses, including the appointment of contractors in five areas to construct houses,” explains Gadebe.
Gadebe says the matter of the non-transfer for the monies has been taken up with the National and Provincial Treasuries, to ensure the monies are transferred.
“It is important to note that the adjustment effected to the 2013/14 Municipal Capital Budget was to effect changes in view of the non-transfer of the funds by the Province to the metro.
“The metro is not able to spend monies it has not received,” he adds.
He however says that the balance of the monies was transferred to the metro over the past two years and will be utilised for planning, land acquisition and house construction.
“In this regard, regular reports are submitted to the Province on progress on expenditure. It is important to note that there have been necessary delays in the processing of land purchases with particular reference to ensuring value for money for the land to be purchased.” – @TumeloBoksburg
