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North West to return millions to Treasury

───   LUCKY NKUYANE 10:36 Mon, 27 Mar 2023

North West to return millions to Treasury | News Article

The North West Government is set to return millions of rands to National Treasury after it failed to utilise the conditional grant funds despite serious challenges of service delivery across many towns in the province.

The provincial government will return R455 million from the R1 billion grant received from Treasury. 

Several departments in the province failed to utilise the conditional grant for 2021/22 from Treasury, which in turn forced Treasury to request the return of the money so it could be allocated to other departments or other provinces. 

According to the DA member of the Provincial Legislature (MPL) and caucus leader, Freddy Sonakile, the provincial government departments failed to spend over R1.063 billion during the 2021/22 financial year. Sonakile said these conditional grants were intended to improve bulk infrastructure, ensure provincial road maintenance, establish early childhood development centres, and expand the National School Nutrition Programme in the province.

“The Department of Health failed to utilise over R256 million. The Department of Public Works and Roads failed to utilise nearly R380 million. The Department of Agriculture and Rural Development forfeited over R85 million to National Treasury.


The North West Provincial Government returned R445 million in unspent conditional grant funding, of the total R1 billion, to National Treasury. 

In response to the DA's written questions, Finance MEC Motlalepula Rosho indicated that provincial government departments failed to spend over R1.063 billion during the 2021/22 financial year. These conditional grant funds were intended to improve bulk infrastructure, ensure provincial roads maintenance, establish early childhood development centres and expand the National School Nutrition Programme in North West,” he said.

Sonakile said the party is concerned by the consistent failure of the Provincial Government departments to spend the allocated conditional grant funding intended for large-scale projects towards infrastructure development and expansion. “It is shameful that the provincial government neglects to improve infrastructure while North West residents continue to experience one of the worst service delivery failures in the country,” Sonakile added.

Meanwhile, the Provincial Treasury has defended itself against the allegations. The Provincial Treasury explained that the 2022/23 financial year has not closed and the financial year of the provincial government ends on 31st March 2023.

“As a result, departments are still transacting and departments should be allowed to close the books before confirming the expenditure performance of all the departments. The departmental expenditure performance would be reflected in the annual reports of the departments and departments implementing critical service delivery programmes, which would have an impact on expenditure”.

The Provincial Treasury said it is worth noting that the financial year for municipalities ends on 30 June 2023, and therefore it will be premature to pronounce any unspent funds for the current municipal financial year.

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