FRIDAY, 11.00AM:
THE European Union’s R600-million-a-year aid package for South Africa is not being spent due to technical problems, leading to the EU cutting disbursements.
It is believed that SA’s slow spending of the aid money will make it difficult for EU officials in Brussels to secure further development assistance programmes for Pretoria when the current aid programme expires at the end of the century.
However, EU ambassador to SA Erwan Four played down the fears. He conceded their have been problems with the disbursements, but said the time has not yet come for Brussels to rethink development assistance to Pretoria.
The slow spending of development aid was attributed to technical difficulties such as those encountered adhering to different tender procedures. Slow implementation of development projects also resulted in slow disbursement of funds, as funding is only provided as a project progresses.
Both SA and EU officials said measures are being taken to accelerate spending and talks are under way to improve government’s capacity to absorb aid.
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