Alfred Nzo District Mayor Vukile Mlerembana; (
Eastern Cape Premier Oscar Mabuyane has been asked to deal with a bankrupt municipality that spent just 13% of its R123-million infrastructure budget and tried to hire a chief financial officer with no academic qualifications.
Last month, the Co-operative Society's Department of Governance and Traditional Affairs warned Alfred Nzo District Municipality that the central government would deny it more than R431.7 million in municipal infrastructure subsidies for the 2024-25 financial year, citing “persistent underspending”. He announced that he would withhold some of the money. R123 million was the first part of the funding given to municipalities.
The letter stated that if local governments fail to improve their compliance with Section 17 of the Revenue Sharing Act, the department will ask the Treasury Department to approve a request to continue withholding infrastructure funds for up to 120 days.
The law stipulates that local governments must spend at least 60% of their allocation to be eligible to receive the remaining portion of the infrastructure grant.
Municipalities in the district include Matatiele, Winnie Madikizela-Mandela, Umzimvuvu and Ntabankulu municipalities.
The letter adds that Mr Alfred Nzo spent only R16 million, or about 13%, of the more than R123.1 million allocated.
“Municipalities must submit invoices from suppliers.” [or] Contractor after completion of verification by [national cooperative governance department] team,” Ane Brewer, the department’s chief director for Eastern Cape local government operations and support, wrote in a letter obtained by the department. email and guardian.
She added: [municipal infrastructure grant] Payment will be made based on the submitted invoice. ”
In the reaction, M&GMr Alfred Nzo admitted that only 13% of the budget had been spent, but once the municipality received an invoice for the project it would have spent more than R82.2 million, which is more than R123.1 million in grants. He said that it corresponds to 66%.
“The Alfred Nzo District Municipality is working to improve its spending targets towards achieving its mid-year targets,” the municipality added, without elaborating on what projects would cover the infrastructure spending deficit. Ta.
District council Democratic Alliance (DA) leader Wonga Potwana has placed the blame squarely on Mayor Bukile Mlerembana, with Eastern Cape MECs for collaborative governance and traditional affairs Mabuyane Williams and Zoril He called on Mr. Williams to “recall” the mayor.
“While the mayor is preoccupied with tenders, the municipality is not running out of infrastructure grants. What is so shocking is that the district has spent more than R10 million on public works. [legal] An incident in which city official Zameer Sikundra asked the mayor about his alleged involvement in city politics, and then wanted to remove him. [municipal] Bid,” Potwana said. M&G.
“As the Attorney General's Office, we insist that Mr. Bukile Mlerembana has failed and should resign as mayor. He is running this municipality as if it were his own farm. calls on MEC Williams and Premier Oscar Mabuyane to recall this delinquent mayor and take action.”
Williams spokesperson Ferro Oliphant said the ministry had “engaged” with the district municipality, adding that Alfred Nzo cited “procurement delays and litigation as the main reasons for the delayed expenditure”.
“Kogta [cooperative governance and traditional affairs] I understand this [lack of spending] This municipality was below the established state RAS, which is clearly a cause for concern. [risk adjusted strategy] We are targeting 15% of the total allocation by the end of August 2024,” Oliphant said.
He said the national department's withholding of infrastructure funding was “more about the grant financial management process than it is a punitive measure, which allows national transfer officials to ensure that local government funding is , so that the second tranche can be transferred at any time during October 2024,” it added. Spend 60% of the first tranche. ”
However, Oliphant did not elaborate on how municipalities would make up for the shortfall in infrastructure spending.
Regarding the DA's request to remove the mayor, a spokesperson said Mr Williams did not have the “legal authority” to remove Mr Mlerembana unless he breached the code of conduct for councilors regulated by the National Co-operative Governance Authority. Ta.
Meanwhile, in the local municipality of Matatiele, Williams has scrapped plans to appoint a chief financial officer without an academic background.
In a letter sent in June, the MEC said it could not approve the appointment of an executive whose name is known. M&Gbecause it did not comply with the local system law.
Mr Oliphant confirmed that the appointment had been blocked, saying: “The authorities became aware that the recommended candidate did not meet the minimum requirements for the position.”
Mr Mabuyane's office also received questions, which he answered on behalf of the Eastern Cape government.
Mr Alfred Nzo's performance was criticized by the Auditor General, including that the performance management system and related controls were not maintained and that there were “material misstatements” in the municipality's financial reports. has been repeatedly pointed out by
Despite promising to answer questions sent by M&G The local government had not commented as of Monday's publication.