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Higher level of life
Page 10
Beating the common cold
Process
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to appoint ombudsman
Stories from the African continent
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Page 3
Huge budget slice for metros Staff Reporter news@inner-city-gazette.co.za
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Finance Minister Pravin Gordhan
abling the 2013-2014 budget in Parliament on Wednesday, Finance Minister Pravin Gordhan allocated local government, community amenities and housing R132 billion to enhance service delivery. A further R85 billion will be transferred to municipalities as equitable share, rising to R101 billion in the 2015-2016 financial year. Gordhan said urban areas, which offered many work opportunities, made a vital contribution to the national economy. “Census 2011 found that 62% of South Africans live in urban areas, and that the population of some municipalities grew by over 50% between 2001 and 2011. The challenge is highly inefficient, segregated and exclusionary divides between town and township imposed costs, not only on the economy and the fiscus but also on families and communities. The Minister said municipal infrastructure grants would also go hand in hand with integrated planning of
new developments to make strides in overcoming spatial inequalities. Funding for improving human settlements has increased from R26.2 billion to R30.5 billion over the next three years, while the Municipal Infrastructure Support Agency of the Dept of Cooperative Governance will get R820 million to provide technical assistance to rural and low-capacity municipalities. Gordhan said a further R4.3 billion had been allocated to a new grant to be administered by the Department of Water Affairs for the provision of water treatment, distribution, demand management and support for rural municipalities. Gordhan announced that the process of establishing a Chief Procurement Office in the Treasury and appointment of the Chief Procurement Officer would be announced in due course. “Consequently, there are hundreds of thousands of transactions from a multitude of centres. There is very little visibility of all these transactions. While our ablest civil servants have had difficulty in opti-
mising procurement, it has yielded rich pickings for those who seek to exploit it.” The Minister added that the National Treasury was scrutinising 76 business entities with contracts totalling R8.4 billion that he believed had infringed the procurement rules. “SARS is auditing over 300 businesses and scrutinising 700 entities, over contracts with a combined value of more than R10 billion. So far, 216 cases have been finalised, resulting in assessments amounting to over R480 million being raised. The Financial Intelligence Centre has referred over R6.5 billion for investigation linked to corrupt activities,” the Minister said. He added that SARS is also targeting recipients of public finances who were not up to date with their taxes. “By working closely with Treasury and interfacing with the government payment system, SARS has identified companies that have received payments but have not declared their full income. They are being audited and others will follow,” the Minister warned.