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Opposition parties demand to know why eThekwini failed to spend R1.2bn restoration grant funds

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Opposition parties demand to know why eThekwini failed to spend R1.2bn restoration grant funds

KZN floods

1st November 2023

By: News24Wire

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Opposition parties in the eThekwini municipality wants the African National Congress-led coalition government to account for its failure to spend R1.2-billion of a R1.9-billion conditional restoration grant that was allocated for human settlements and coastal sewerage repair projects. 

The grant was allocated for infrastructural damage caused by last year's floods.

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ActionSA's Alan Beesley said the National Treasury refused City manager Musa Mbhele's request to roll over the funds, which were allocated for the 2022/23 financial year. 

Beesley said the National Treasury cited the City's failure to furnish it with the required documentation as one of the reasons for the rejection of the request.

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Beesley expressed concern about the City's reported failure to complete the required documents in the face of deteriorating infrastructure, water wastage and sub-standard housing.

"The withdrawal of the R1.2-billion is a true reflection of how woeful the ANC-led coalition municipality has become. It is unfortunate that, once again, the residents and businesses of eThekwini are paying the price for this incompetence," Beesley said.

The Democratic Alliance's Thabani Mthethwa called for the immediate resignation of the City manager, as well as Mayor Mxolisi Kaunda, and councillor Themba Mvubu who chairs the Human Settlements and Infrastructure Services Committee. 

Mthethwa said Mbhele failed as the City's accounting officer and Kaunda failed as the chairperson of the executive and finance committees.

News24 previously reported that more than 15 000 homes were either destroyed or swept away during the floods.

Human Settlements Minister Mmamoloko Kubayi said the national housing department received the funding on behalf of the eThekwini municipality to guard against corruption and overcharging.

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