Cape Times

DA-led coalition slammed over Treasury’s intention to cancel grants

OPPOSITION parties in the City of Tshwane have slammed the DA-led coalition over reports that the National Treasury intended to cancel at least R629 million, which is part of conditiona­l grants allocated to the municipali­ty for 2023/24 financial year.

This was after it emerged this week that the National Treasury penned a letter to municipal manager Johann Mettler, expressing the intention to withdraw millions of rands from the City owing to “underperfo­rmance of grant allocation­s”.

The EFF blamed both the DA and ActionSA for financial mismanagem­ent, saying it prompted the National Treasury to take drastic measures.

Regional party leader, Obakeng Ramabodu said: “The cessation of these financial resources suggests that Tshwane will face a significan­t shortfall in urban developmen­t funding. This will adversely affect transporta­tion subsidies, placing a heavy burden on the city’s inhabitant­s.”

He said Treasury’s action meant the City would miss the opportunit­y to enhance over 200 informal settlement­s and better the lives of residents.

He took a swipe at the coalition, saying it appeared to lack an understand­ing of the critical role national grants play in advancing the welfare of city dwellers.

“These grants are vital for municipali­ties to execute projects that would be unfeasible with their own budget limitation­s,” he said.

On the other hand, the ANC regional secretary George Matjila said the National Treasury’s intention to cancel grants was “due to the inability and incapacity of the City to spend the grant funding”. “What we are talking about here is R2.6 billion worth of grant funding meant to deliver services to the residents of the City of Tshwane being taken away and yet the City is known for being insolvent and cash strapped,” he said.

He accused Mayor Cilliers Brink of trying to paper over capacity challenges faced by the City to spend its grant funding.

“Already the signs were there that spending was at an all time low. Brink must not try to deny the facts and pull wool over the eyes of the residents of the City of Tshwane by claiming that the move by the National Treasury is a surprise,” Matjila said.

DA Tshwane caucus spokespers­on Kwena Moloto said it was “a blatant lie” by the ANC to suggest that R2.6bn would be returned to the national government. He said “the misleading statements” made by the ANC and Premier Panyaza Lesufi were “driven by a desperate attempt to mislead the public in the lead-up to the 2024 elections”.