Media Statement
For Immediate Release
KWAZULU-NATAL LEGISLATORS RAISE CONCERNS OVER THE SUSPENSION OF CONDITIONAL GRANTS TO 25 KWAZULU-NATAL MUNICIPALITIES
The Portfolio Committee on Cooperative Governance and Traditional Affairs (CoGTA) in KwaZulu-Natal has expressed deep disappointment and concern over the suspension of conditional grants totalling R861.4 million to 25 municipalities within our province.
It is particularly alarming that eThekwini Metro, the province’s only metropolitan municipality, severely challenged by service delivery issues, accounts for the bulk of the suspended funds, totalling R678 million. Furthermore, it is highly concerning that Msunduzi Municipality, the capital city of KwaZulu-Natal, also features prominently among those municipalities impacted by grant suspension, highlighting persistent governance and financial management challenges.
This situation is unacceptable, as these grants were specifically intended to improve the quality of life of residents through vital infrastructure projects such as electricity provision, water and sanitation improvements, and public transportation enhancements. Non-spending of allocated grants demonstrates poor financial governance and inadequate administrative management, depriving our communities of essential services and development opportunities.
The Auditor-General’s (AG) recent report underscores that most municipalities in KZN have achieved unqualified audits with findings. This indicates significant deficiencies in compliance, financial management, and governance processes. Findings predominantly include unauthorized, irregular, fruitless, and wasteful expenditure; non-compliance with key legislation; weak financial reporting; and inadequate consequence management for those responsible for governance lapses.
It is imperative that municipalities vigorously pursue Section 106 investigations to enforce financial accountability. These investigations are crucial for addressing the findings raised by the AG, and where necessary, officials and political figures implicated in financial misconduct must be prosecuted swiftly and effectively.
Moreover, political parties governing these municipalities bear a direct responsibility for enhancing oversight and enforcing accountability. It cannot remain business as usual when nearly R900 million, critically needed for the development and welfare of KZN residents, is lost due to non-performance.
We, therefore, call on all political leaders at both provincial and municipal levels to prioritize stringent oversight and robust consequence management practices to ensure grant funding is utilized effectively and efficiently. The cycle of complacency must end, and swift action must be taken to address audit findings decisively to ensure meaningful improvements in governance, financial management, and service delivery.
It is our collective responsibility to ensure that every cent allocated to improving the lives of our people is spent wisely, transparently, and effectively. The people of KwaZulu-Natal deserve better.
Members of the CoGTA Portfolio Committee has called on the KZN Department of Cooperative Governance and Traditional Affairs to furnish them with a detailed report outlining reasons why individual municipalities failed to spend their grants so that appropriate oversight interventions can be employed to assist.
ISSUED BY THE COGTA PORTFOLIO COMMITTEE CHAIRPERSON, HON MARLAINE NAIR
For interviews: Hon Marlaine Nair 0726928963
For enquiries: Mr Bongani Tembe 0823272600
