Treasury threatens to stop a possible R283 million Grant Funding to Polokwane
Date: 02 March 2023
Release: Immediate
The DA in Polokwane will request an urgent special council sitting to debate National treasury’s intention to invoke section 18 of the Division of Revenue Act which would possibly see Treasury stop funds to the following grants, totaling a staggering R283 million:
R97 million from IUDG- Integrated Urban Development Grant,
8 million from the NDPG- Neighbourhood Development Partnership Grant,
R47million from PTNG- Public Transport Network Grant,
R23 million from INEP- Integrated National Electrification Program Grant,
R20 million from WSIG- Water Services Infrastructure grant,
R 4 million EEDSM- Energy Efficiency and Demand Side Management,
R 77.3 million from RBIG- Regional Bulk Infrastructure Grant
Treasury cites underperformance and non-compliance as reasons for this decision.
Should the Municipality fail to motivate why the grant funding should be allocated, it will have a disastrous effect on many projects currently underway.
The above grants spread across various directorates in the municipality will have far reaching consequences on all aspects of service delivery.
Relevant Directors as well as the Municipal Manager need to answer for the poor spending of these funds.
The DA will write to the Speaker requesting full details on the reply submitted to National Treasury and request a full report to be submitted to an Urgent Council meeting with the imminent response from National Treasury and clear recommendations on the way forward.
The latest letter from Treasury comes after an amount of R142m was not approved in November 2022 for rollover regarding the 2021/2022 year and just days after a downward budget adjustment of R60 million for capital projects for the current 2022/2023 year.
The DA will also submit extensive written questions in the next MPAC public hearing on the capacity within the supply chain management unit of the municipality and project management units.
Residents of Polokwane can no longer be subjected to the municipality’s incompetence.
We need accountability, transparency and proper consequences that only a competent DA-led government can deliver.
