Durban - In another shocker, the ANC-run eThekwini Municipality has failed to adequately spend its neighbourhood development grant even though most of its black townships need it.
As a result, the City has lost R122 million of the grant while other cities like Ekurhuleni were able to spend theirs and were given additional funds.
In a report seen by IOL, the City was granted R315m in the previous period but struggled to spend the funds until the drastic decision by the National Treasury.
NEWS: The ANC-run eThekwini metro failed to adequately spend its neighbourhood development grant even though most of its largely black townships need it. As a result the city has lost R122 million of the grant given out to help cities to develop townships infrastructure. @IOL pic.twitter.com/RXOpEpa0kw
— Sihle Mavuso (@ZANewsFlash) April 15, 2023
The latest loss of the monies comes barely a month after IOL reported that the City failed to utilise its urban settlements development grant which is given to cities to acquire and develop land to eradicate shacks.
The City lost R100m and when asked about it said it was going to fight the decision since it was able to utilise the grant.
In a new allocation gazetted last month for the neighbourhood development grant, the National Treasury announced it would slash the City’s allocation by a whopping R122m.
An insider in the municipality told IOL that the City’s failure to spend grants hinged on three identified challenges.
NEWS: More eThekwini municipality shortcomings exposed. The National Treasury has stopped R100 million which was to be given to the ANC-run metro as part of the urban settlements development grant due to underspending. The grant is given to metros to acquire and develop land pic.twitter.com/uwspzFaKtr
— Sihle Mavuso (@ZANewsFlash) April 7, 2023
The City’s supply chain management (SCM) unit allegedly takes very long to complete the appointment process for contractors; alleged infighting by ANC politicians regarding who should be appointed; and threats by business forums who are mainly active in townships.
“Even when SCM is ready to conclude the process, politicians interfere and want to have companies of their proxies appointed, thus delaying the process and grants are lost.
“In some cases, there are always threats of business forums who are always itching to disrupt projects in townships and demand to be included,” the source told IOL.
When IOL asked eThekwini about its glaring failure, it gave a long response, even citing a stalled and about-to-fail neighbourhood project in Hammarsdale in the west of the city.
Lindiwe Khuzwayo, the municipality's head of communication, said: “The City has made strides in the development of townships and other areas that needed attention in eThekwini ...
“Mpumalanga Sizakala Centre Precinct: The project entails the accommodation of government service departments integrated with an SMME business hive.
“R100 mill grant has been allocated to the project.
“(The) project has been delayed as a result of an ongoing court case regarding land ownership disputes and unconsented land occupation.
“National Treasury however remains committed to the funding of the project.“
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