Nelson Mandela Bay, Buffalo City metros biggest culprits of underspending in EC, MPs told

As Eastern Cape municipalities perennially come under flak for poor service delivery, millions of rands in government funding is not being spent and must be returned to the National Treasury, Parliament has heard.

This has emerged at a meeting of the portfolio committee on co-operative governance and standing committee on the auditor-general, which are on an oversight visit in the province this week.

It’s the fourth province being visited by the parliamentary committees, as they grapple with the problems of the country’s many beleaguered local councils.

Parliamentarians have questioned how with the massive infrastructure backlogs in the province, municipalities are not spending grants intended for this purpose.

Over the past financial year, the province has had to return more than R300 million in unspent funding to National Treasury.

Finance MEC Mlungisi Mvoko said the two metro councils of Nelson Mandela Bay and Buffalo City were the biggest culprits of the underspending.

"The province has made measurable strides in improving municipal finance and governance, but the return on investment is not always evident, especially as far as the impact of service delivery and public confidence."

Mvoko said there was little indication that the metros will improve in their infrastructure spending this year.

"Your findings and the things you are looking at, and their responses, are chalk and cheese. They have every reason and excuse not to perform."

Both metro councils have received qualified audits for the past financial year and are still due to present their side to Parliament.