Polokwane Municipality must account for grants reduced by R135.9 million

Issued by Tiny Doraine Ramathabatha Chidi – DA Councillor in Polokwane Local Municipality
26 Apr 2023 in Press Statements

The National Treasury Gazette 48327 which was issued for the performance of municipalities on their grant spending, reported underperformance and non-compliance in Polokwane Municipality’s ability to spend conditional grant funds. 

The gazette indicates that the following grants will be reduced due to an inability to spend allocated funds:  

• Neighbourhood Development Partnership Grant (NDPG) -R 14 912 000.00

• Intergrated Urban Development Grant (IUDG) – R 50 000 000.00

• Public Transport Network Grant (PTNG) – R 32 990 000.00

• Energy Efficiency Demand Side Management Grant (EEDSM)- 4 000 000.00

• Regional Bulk Infrastructure Grant (RBIG) – R 20 000 000. 00

• Water Service Infrastructure Grant (WSIG) R 14 036 000

These reductions are a result of the various rollover applications the municipality made and certain amounts from the rollover application being denied by Treasury due to the municipality’s failure to show future commitments on grants, now resulting in this reduction by National Treasury. 

The reduction will have a tremendous impact on service delivery and consequently the quality of residents’ lives. 

The DA acknowledges the improved audit opinion and the municipality’s forensic investigation into maladministration by the previous administration, but these need to be coupled with improved planning and spending of infrastructure grants to avoid delays in service delivery.

The DA will write to the MEC for COGHSTA, Basikopo Makamu, requesting that Polokwane Municipality undergo an assessment. This assessment will provide a fair and objective report on the performance of the municipality, focusing on key performance areas and also indicating the necessary remedial action or support needed to address its challenges. Placing the municipality under assessment will benefit the residents, who deserve adequate basic services.