The Committee was concerned at the expenditure performance of some of the health conditional grants in 2012/13. In addition, the Committee raised concerns on delays in refurbishments of some hospitals, the cost implications of such delays and appointment of key personnel. The Department outlined the following reasons for under-expenditure in conditional grants: . Delays in the approval process of provincial roll-overs; . Provincial departments preferring to utilise equitable share funds in place of conditional grant funds when implementing infrastructure projects; . Non-payment of invoices relating to infrastructure spending in the Free State Province as a result of a directive from the Free State Provincial Treasury to halt grant payments due to cash flow problems. The Department stated that it had requested intervention in this matter.