For Hospital Revitalisation grant, the PoFS reported that its adjusted budget was R282 million and it had spent R129 million (46 per cent) at the end of the third quarter of the 2009/10 financial year. The PoFS explained that under-spending was due to a number of challenges including: the poor performance by the implementing agents and lack of capacity in planning and technical expertise in project management. The PoFS reported that there was lack of managerial capacity to manage infrastructure projects. Furthermore, the PoFS further reported that under-spending was caused by none appointment of contractors leading to delays in the execution of projects, and poor contractor performance which led to termination of certain contracts. Furthermore, the PoFS reported that the rollover of R34 million allocated through adjustment budget when there were spending bottle-necks worsen the spending level, and that the funds allocated for planning were not used.