Hon Chairperson, the DA objects to the Human Settlements budget for the 2012-13 financial year, because we believe that the budget does not reach the intended purpose of realising the dream of poor beneficiaries, which is of owning quality houses.
Over the years the Department of Human Settlements has constantly failed to reach its targets and underperformed in terms of its mandate. While the budget has increased yearly, the target has been decreasing. For example, in the 2010-11 financial year the number of units decreased from 161 800 to 121 800 units.
The underexpenditure of the department is endemic. For example, the urban settlement development grant, the USDG, which is allocated for upgrading of informal settlements, has not been spent adequately. Only 57% of this grant was spent in the previous financial year, while the escalating backlog of 2 700 informal settlements has not been addressed.
The other important grant is the rural household infrastructure grant, the RHIG, which is supposed to be used to address the rural sanitation and basic services backlog. Only 20% of the allocated R257 million has been spent, while the rural services backlog stands at 2,4 million in sanitation. Some rural areas still don't have access to water, and some are still using the bucket system, which is unacceptable. Proper plans should be put in place to spend the new allocation of R479,5 million for this financial year.
Supply-chain management is another issue of concern and was raised in the Auditor-General's report. Uncompetitive and unfair procurement processes are still endemic in this department. The issues of fraud, corruption and maladministration are still rife. In conclusion, the DA does not support the budget. I thank you. [Time expired.]