Johannesburg, Ekurhuleni and Tshwane metros are in deep trouble, standing to lose billions in development allocation grants, which could be taken back to the national fiscus by the National Treasury as a result of poor expenditure.
Mayor of Tshwane, Cilliers Brink | Floyd Brink, City of Joburg City Manager. | Dr IMogen Mashazi, City Manager, City of Ekurhuleni.
“We want to assure our residents that a majority of the allocated funds have already been committed and contractors are currently working on approved projects in different regions of Johannesburg. These projects align with our Service Delivery Budget Implementation Plan. The revenue collection crisis has negatively affected the delivery of services in several areas in the city.
Ngqaleni said the Urban Settlement Development Grant, Public Transport Network Grant, and the Neighbourhood Development Partnership Grant would have their allocations affected. Other than Cape Town, Ekurhuleni was the only SA metro to receive a clean audit in 2022/23. However, councillors now fear liquidity issues could cost the municipality its clean audit status — and coalition partners the ANC and EFF are on opposing sides of the debate,Despite the possible withdrawal or stoppage of the grants, Ngqaleni said the decision would not in any way affect future allocations of any of the municipalities.
Tshwane executive mayor Cilliers Brink said he was not oblivious of the seriousness of the decision and that the city would comply with an instruction to account for the poor expenditure.
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