Fiscal Crunch Hits Gauteng Housing, Health And Agriculture Grants

ANC National Government Failure

The failure of the ANC national government to effectively manage the country’s finances is filtering down to Gauteng, with the Provincial Government seeing a reduction in the grants it receives from National Government for service delivery cut by massive amounts over the next three years.

The following departments would see reductions in grants:

  • The Human Settlements Development Grant will be reduced by R1.6 billion in the 2016/17 Financial Year;
  • Comprehensive Agriculture Support Programme Grant reduced by R210 million over the next three years; and
  • Health Facility Revitalization Grant reduced by R365 million over the next three years.

This will greatly impair the provincial government’s ability to deliver on its promises to provide housing and upgrade human settlements as outlined in by the Premier during the tabling of his office’s Annual Report last week.

In 2015/16 the Gauteng Human Settlements Department underspent on its grant and as a result under-delivered on its housing promises.

Agricultural Support Needed

The Premier pointed out in the same speech that he was unhappy with the performance of the Human Settlement department. This reduction will further impair the provinces performance in terms of housing.

Furthermore, in light of the severe drought, agricultural support is needed now more than ever in Gauteng to ensure that the sector remains viable. Drought has been cited as one of the reasons the South African economy is struggling.

The Gauteng province is similarly under pressure to ensure that its healthcare facilities are able to accommodate the needs of over 13 million people in the province, and the reduction in this grant will severely impact the provinces ability to deliver quality healthcare.

As much as the ANC in Gauteng tries to distance itself from President Jacob Zuma and the failings his administration, they are still one party with the same governing philosophy, and their ability to govern Gauteng is impacted by the President’s failings.

Gauteng Provincial Budget

The Gauteng Provincial Budget for the 2015/16 financial year does not plug these essential gaps, but the ANC government in Gauteng has still seen fit to ensure that there was a flurry of pre-election billboards marketing the provincial government and the premier.

Despite losing out on grants, the province still saw it fit to spend R100 million on ‘voter education’ for the local government election.

I challenge Gauteng Finance MEC Barbara Creecy and Premier Makura to take the approach adopted by DA Tshwane Mayor Solly Msimanga and slashing spending on lavish parties (such as the State of the Province Address) and unnecessary travel and getaways masked as department “study tours” and “strategic breakaways”.

I further challenge the ANC government in Gauteng to slash advertising in favour of service delivery.

 

Media enquiries:

Ashor Sarupen

DA Gauteng Spokesperson on Finance

060 558 8303

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Gauteng Premier Misleads the Public on Mega-Housing Projects

Gauteng Premier David Makhura is misleading the public on the progress of public/private agreements to develop mega-housing projects in the province.

On 7 April the Premier and Human Settlements MEC, Jacob Mamabolo announced that a memorandum of understanding was signed between the Provincial Government, Gauteng’s 12 municipalities and 43 construction companies to develop these projects.

However, in response to a written DA question regarding this event, MEC Mamabolo states that: “There are no 43 construction consortiums involved in the construction for the mega projects. The Department is in the process of finalizing a procurement model for the mega projects.”

Click here to view the response.

It is clear that Premier Makhura and the ANC are under severe pressure to ramp up government service delivery as we head for the 2016 local government elections.

However, by hosting lavish media events under the pretence of signing non-existent memoranda of understanding, the premier has exposed his hypocrisy about being serious about the needs of Gauteng’s people.

Premier Makhura needs to be honest to the people of Gauteng over the authenticity of this memorandum.

 

Media enquiries:

John Moodey MPL

DA Gauteng Provincial Leader

082 960 3743

[Image source]