International Development News
Development News Edition
Give Feedback

NW Treasury dispels reports of R5 billion Mmabatho Stadium renovate

The provincial government clarified that if the province would consider renovating both the stadium and the Mmabatho Convention Centre, it would cost an estimated R5 billion for the two projects.


Devdiscourse News Desk Mmabatho
Updated: 09-07-2019 16:19 IST
NW Treasury dispels reports of R5 billion Mmabatho Stadium renovate

Rosho emphasized that the province will implement the “No Plan No Budget” approach and that only projects that are ready for implementation will be funded moving forward.  Image Credit: Wikimedia

The North West provincial Treasury has dispelled reports that it is planning to renovate the Mmabatho Stadium at a cost of R5 billion.

"Nowhere in the Provincial Budget and the Appropriation Bill was it mentioned that the North West Provincial Government is going to spend R5 billion to renovate Mmabatho Stadium. This means the province did not set aside the mentioned amount for the project," said the Treasury in a statement on Monday.

This as a report surfaced that the provincial government plans to renovate the stadium.

The provincial government clarified that if the province would consider renovating both the stadium and the Mmabatho Convention Centre, it would cost an estimated R5 billion for the two projects.

"The amount in the headline of the article is blown out of proportion as it misleads readers into thinking that the provincial Treasury is going to spend R5 billion on renovating the stadium alone. North West residents are encouraged to confirm contents of news articles with relevant departments before believing anything they have read," it said.

Budget allocation

Meanwhile, North West Finance MEC Motlalepula Rosho affirmed that the budget allocations for provincial departments have no material changes to the previously tabled appropriation except incorporating transfer of functions.

Rosho indicated that departments and institutions that have not been affected by reconfiguration are the Provincial Legislature, Departments of Health, Community Safety and Transport Management, and Public Works and Roads.

The MEC highlighted that through the process of reconfiguration, the name of the Department of Finance has been changed to Provincial Treasury. This is aligned with Section 17 of the Public Finance Management Act (PFMA) which stipulates that there is a Provincial Treasury for each province consisting of the MEC for Finance and the department responsible for financial matters.

"Consequently, this Department is allocated R528.7 million in the first year of the MTEF [Medium Term Expenditure Framework] to continue with its oversight responsibilities with regard to financial matters in departments, municipalities, and entities. This allocation increases to R652.4 million in the outer year," she said.

The MEC impressed upon departments to use public resources effectively and efficiently with a view to grow the economy, reduce unemployment and empower residents with opportunities that will change their lives for the better.

Among the allocations in the province is that the Provincial Legislature receives R486.9 million in 2019/20, R484.5 million for 2020/21 and increasing to R511.7 million in 2021/22 financial year.

For the Department of Health, the budget remains R12.3 billion for the 2019/20 financial year growing to R14.4 billion in the outer year of the MTEF while the Department of Community Safety and Transport Management receives an allocation of R2.265 billion in 2019/20, R2.388 billion for 2020/21 and R2.518 billion for 2021/22.

Infrastructure challenges

The MEC also expressed concern at the current infrastructure challenges experienced by the province.

These challenges ranged from underspending, increased accruals and time overruns among others.

Rosho emphasized that the province will implement the "No Plan No Budget" approach and that only projects that are ready for implementation will be funded moving forward.

"I want to emphasize the importance of spending budget according to plans within the financial year. Allocations of departments that do not spend accordingly will be redirected towards critical service delivery priorities," she said.

She added that the provincial government has agreed to convene the Integrated Infrastructure Planning and Implementation Lekgotla next month.

The Lekgotla will engage role players in the delivery of provincial infrastructure projects and will confirm projects planned for execution in 2021. This move, Rosho said, is aimed at ensuring proper planning and execution of projects.

(With Inputs from South African Government Press Release)

COUNTRY : South Africa