Durban – As the municipal financial year draws to a close, KwaZulu-Natal MEC for Co-operative Governance and Traditional Affairs, Bongiwe Sithole-Moloi, raised concern over the unspent Municipal Infrastructure Grant (MIG).
The MEC said the Department is fully committed to providing assistance and support to all municipalities through their MIG officials.
She said the MIG officials will actively engage with municipalities to improve their planning processes.
“Despite the challenges that have contributed to this predicament, we remain optimistic that, with the necessary support, we can effectively address this issue and reduce under expenditure,” said Sithole-Moloi.
The Department said according to the April 2023 Division of Revenue Act (Dora) reports, an amount of over R1.17 billion that was allocated for the MIG remains underutilised across all municipalities in the province, despite the urgent need for essential services.
“While it is expected that the unspent amount will decrease by the end of the month, the MEC is worried that additional funds might remain unutilised, which could further delay service delivery in municipalities,” it said.
The department said to address the issue of under expenditure, Sithole-Moloi called for a meeting with mayors, speakers, and administrators from all 34 municipalities in the province at the Pietermaritzburg City Hall on Tuesday.
During the engagement MEC Sithole-Moloi strongly urged municipalities to enhance their planning processes and reduce unspent funds in the upcoming financial year, it said.
“As the department responsible for supporting municipalities in preventing the discontinuation of funds and improving overall performance for timely service delivery, MEC Sithole-Moloi has notified all affected municipalities of the need to engage in deliberation,” said the department.
These discussions, according to the department, will identify the reasons for under-expenditure, reassess implementation plans for the remaining grant balance, and ensure proper planning for the next financial year.
“The department’s primary goal is to ensure that all municipalities fully utilise their allocated grants and adhere to the appropriate procedures for the expenditure of public funds. In line with this objective, it has been agreed that regular meetings will be held to monitor progress and facilitate communication between the department and municipalities.” it said.
Sithole-Moloi is confident that by working collaboratively with municipalities, the issues surrounding under-expenditure can be effectively addressed.
“The department remains steadfast in its commitment to fostering efficient and transparent financial management practices within local municipalities, ultimately ensuring the delivery of quality services to communities.