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Municipal Watch: Municipalities blow billions in unused grants: How does that happen?

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This morning we focus on how municipalities are said to be have only spent R12.8 billion of the R44.1 billion of the conditional grants allocated to them. This came out of a webinar hosted by the National Treasury. Conditional grants are funds allocated by the national government to municipalities for services like infrastructure development, housing and public transport upgrades. According to Section 21 of the Division of Revenue Act,  any conditional allocation or portion not spent by the end of the financial year reverts to the National Revenue Fund (NRF) unless the roll-over of the allocation is approved. This of course raises a lot of questions seeing how municipalities don’t seem to be using these funds as many of them are crumbling as if this grant does not exist. So then, what could be some of the reasons why this is happening? To get an understanding on this, we are joined by...

Guest: Miyelani Holeni – Chief Group Advisor at Ntiyiso Consulting Group

Guest: Dikeledi Direko - Member of Parliament’s Portfolio Committee on COGTA

Guest: Zinzi Mphahlele - Manger: Budget and Reporting at the Polokwane Municipality

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