By Lehlohonolo Lehana.
The National Treasury has cut back R5 billion conditional grants allocated to the City of Tshwane by R346 million due to underspending of budget recorded by the municipality.
On Thursday, the executive tabled a budget report detailing the municipality’s expenditure up until the end of March.
The report was tabled after the council approved the adjustments to the Medium Term Revenue and Expenditure Framework for the 2023/24 financial year on February 29 this year.
The report essentially altered the budget allocation in respect of some of the transfers and grants to the municipality.
“The total adjusted operating transfers and grants amounts to R5bn and the total capital transfers and grants amounts to R1.8bn, reflecting a decrease of R346m because of fiscal reduction implemented by the National Treasury,” the report said.
Tshwane Executive Mayor Cilliers Brink said the city must improve its performance.
“Many of the reasons for underspending in the past are now eliminated, including the presence of top management, all of the Section 56 positions filled, [and] performance agreements. We now have a structure, chaired by the deputy mayor, that looks at the capital projects, [and] the blockages.”
The municipality does have the option of requesting the National Treasury rolls over the unspent funds to the next financial year, which begins next Monday.
In March, the auditor-general said the city obtained a qualified audit opinion, painting a fairly rosy picture of the state of governance in the municipality.
In February, the city requested the National Treasury not to cut R629 million in funding after it failed to spend money earmarked for urban development, public transport improvement and upgrading informal settlements.
The Economic Freedom Fighters (EFF) councillor Trevor Moloisane said his party was greatly dismayed by the underutilisation of funds in the municipality.
“This relentless underspending has led to catastrophic consequences including the National Treasury decision to slash R346m and withhold an additional R70m from our budget,”he said.
He said the underspending culture was irrefutable evidence that “the DA-ActionSA coalition is grossly incompetent and unfit to govern, showing a blatant disregard for effective service delivery in Tshwane”.