Minister for Cooperative Governance and Traditional Affairs, Minister Sicelo Shiceka, has raised serious concern about the inability of most municipalities to spend Municipal Infrastructure Grant (MIG) funds allocated to them for infrastructure development and service delivery.
The Minister says that “the inability of municipalities to spend vindicates the correctness of a call for the urgent establishment of the “special purpose vehicle” as well as urgent employment of competent and professional personnel capable to perform their duties diligently, effectively and efficiently. This will enable them to address challenges related to inability to spend MIG, meant for service delivery as well as infrastructure maintenance; refurbishment and investment.
The past financial year report ended in June 2009/10 shows that out of 283 municipalities, 56 municipalities spent less than 80 percent of MIG allocated to them. Furthermore, out of 283 municipalities, 80 municipalities spent less than 90 percent of their allocated funds. Consequently, the situation has impacted negatively on service delivery in the areas of infrastructure for water, electricity, sanitation and waste management services.
The minister further said that “the recent decision taken by the National General Council (NGC) of the ANC to support the amendment of the Municipal System Act in order to ensure that local government is professionalised such that people holding public political offices should not be employed in key managerial posts such as Chief Financial Officers, Municipal Managers, is therefore most welcome”.
“Municipalities have a variety of unique challenges including lack of capacity that would enable them to have proper procurement systems and financial management systems in order to appropriately utilise MIG funds and speed up service delivery,” said the minister.
The minister has called for the urgent implementation of the National General Council with regard to professionalisation of municipalities as well as the establishment of the special purpose vehicle.
Enquiries:
Mbulelo Musi
Cell: 082 338 3890
Source: Department of Cooperative Governance and Traditional Affairs
