The municipal spokesperson, Jeanette Tshite, told OFM News the money the Treasury intends to withhold is just a portion of the grant and that the municipality received a letter that highlighted only an "intention" to withhold the funds. 

Tshite says the letter from Treasury is therefore not about the definite stopping of funds. 

ALSO READ: Tesourie weerhou R60m. van Potch-munisipaliteit

"The low expenditure towards the allocated grant funding is due to the delay in the appointment of the service providers. However, this matter has been addressed, as service providers have been appointed. At the planning stages of both the original and special budgets, the municipality aimed, and still aims, to exhaust the funding by committing to the specified projects which are recognised by the funders". 

Tshite says as part of its response to the matter, the municipality confirmed that numerous appointments had been made late in November 2022. 

She says, however, that due to closure over the holiday season, work on the projects commenced only in mid-January 2023 and improved progress will be reflected in the next reporting period. 

"Project plans to expedite the implementation were included in the submission made to the National Treasury and further supported the municipality’s commitment to ensuring that the grant funding is spent and projects completed.

The few outstanding appointments are currently being processed and will be completed by mid-March 2023; therefore, delivery of services to the public will not be affected. The municipality has provided a response to National Treasury with a commitment to spend the funds before the end of the financial year, 30 June 2023. We are still awaiting the response from National Treasury on the way forward, but we remain optimistic that our case will be handled favorably," Tshite adds. 

In a letter to JB Marks municipality, National Treasury's head of intergovernmental relations, Malijeng Ngqaleni, proposes that a portion of the 2022/23 allocation to the municipality, in respect of the municipal infrastructure grant (MIG), the integrated national electrification programme and the water services infrastructure grant, be stopped due to the underperformance of the grant allocations. 

In the letter sent to the municipality in February 2023, Ngqaleni said the National Treasury intends to stop the allocations in terms of section 18 of the 2022 DoRA and section 38 of the Municipal Finance Management Act.

"Acting on the above, the National Treasury hereby informs you of the intention to stop an amount of R28,9 million from your 2022/23 MIG allocation of R76,2 million, an amount of R27,6 million from your 2022/23 INEP allocation of R45,9 million, and an amount of R5,7 million from your 2022/23 WSIG allocation of R35 million, respectively in terms of section 18 of the 2022 DoRA.  This decision will not in any way affect future allocations to your municipality." 

OFM News