Huge underspending holds Eastern Cape back again

THE Eastern Cape underspent on several of its conditional grants during the first quarter of the current financial year. To date, the province has spent only R192 million of the R1,25 billion it has been allocated for housing in the current financial year.

In the last financial year, the Eastern Cape forfeited R500 million of its conditional grant for housing that was allocated to other provinces able to spend the money and still did not spend what was left.

The Community Library Services Grant has also been underspent with only R3,6 million of the R9.2 million allocated for the first quarter actually spent.

The HIV/AIDS Life Skills grant administered by the Education department is also under-spent with R2,6 million of the first quarter allocation of R7,1 million paid out to date.

• Full report in The Herald tomorrow.