Cape Town - An ongoing investigation into the Finance Linked Individual Subsidies (FLISP) in the province has so far found irregular expenditure of over R9 million for 2021/2022.
For the 2018/2019 year, a total of 113 subsidies also resulted in over R2m in irregular expenditure, and over 20 subsidies showed hundreds of thousands in underpayments.
This came to light following parliamentary questions by ANC MP, Andile Lili, to Infrastructure MEC and provincial DA leader, Tertuis Simmers.
Citing the Infrastructure Department’s annual report for 2021/22, which read: “The Department is in the process to investigate all Finance Linked Individual Subsidies (FLISP) payments to quantify the expenditure incurred dating back from 2016/2017, 2017/2018 and 2018/2019 to determine the full extent of the irregular expenditure incurred”, Lili wanted a progress update and the details of the irregular expenditure incurred.
Simmers confirmed that the investigation was still in progress and being conducted by three assistant directors, four senior state accountants and one accounting clerk.
He explained that there were two teams from the Department’s Internal Control Unit (ICU) who are reviewing the subsidy files from the Subsidy Administration Directorate.
“For quarters 1 and 2 of the 2022/2023 financial year, 921 files have been reviewed and 41 differences were identified. The report to conclude quarter 2 will be available at the end of December 2022.
“For the 2018/2019 financial year, the review is almost complete. Of a total of 465 subsidies, 310 files have been reviewed. A total 113 subsidies resulted in R2 124 499 irregular expenditure.
Also, 23 subsidies reflected underpayments to the amount of R712 590. The review process for the outer years will commence, once the review process for the 2018/19 financial year is complete,” he added.
Housing activist, Bevil Lucas, said: “Now that it has been uncovered it will be interesting to see what kind of action will be taken against those found to be participating in this type of conduct,” he said.
Lili added: “I get so many complaints from our people around the Western Cape about service sites, and their subsidies not being accessible.
For example there is an area called Zwelitsha in Khayelitsha, since 2006 you’ve got over 2 000 service plots, and those people have been waiting for their subsidy since then. As they are applying, they are told there is no money.
“Meanwhile a lot of money is allocated, then it goes back without being used.
“The DA is poor in service delivery, especially in poor communities. They are moving at a very slow pace when it comes to addressing this issue of housing and people are getting impatient. The backlog is over 600 000. They need to address this issue of the money not being used.”
Cape Times