KZN Treasury to monitor Covid-19 expenditure

The KwaZulu-Natal Provincial Treasury says they have set up a mechanism to monitor how provincial departments, municipalities, and public entities are utilising the Covid-19 procurement fund.

Provincial Treasury MEC Ravi Pillay delivered the department’s R718.763 million 2020/21 budget vote on Wednesday. He stated the department cannot do the procurement itself, as departments remain responsible and accountable.

Pillay said: “The provincial Treasury has started monitoring expenditure related to Covid-19 by municipalities, public entities, and departments.

“Risks such as the possible purchase of items not related to Covid-19, while using the emergency procurement regulations and instruction notes, have been identified.

“We are acutely aware of the risks that are already manifesting themselves. We will undertake the training of supply chain management to ensure that departments can procure commodities on an emergency basis, in line with the emergency procurement regulations, without compromising on quality, specifications, and value for money.”

Part of President Cyril Ramaphosa’s R500-billion economic support package, provincial governments is budgeted to receive R30 billion, with KZN’s share of that amount being R6.2 billion.

Pillay said they were aware of the risks of the new Covid-19 emergency procurement regulations.

“We will undertake the training of supply chain management to ensure that departments can procure commodities on an emergency basis, in line with the emergency procurement regulations, without compromising on quality, specifications, and value for money,” said Pillay.

He said their projections show that unemployment during the pandemic can increase to 40%, which is currently at 25%.

“The scourge of Covid-19 is expected to cause the overall demand for goods and services to drop by about 7.5% in the province. The provincial GDP is expected to contract by approximately 8.5%, with employment falling by a staggering 14.6% this year.”

(Compiled by Sandisiwe Mbhele)

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