KZN Funding for failed municipal project must be returned

By: Francois Rodgers, MPL DA KZN Spokesperson on Finance In the game of rugby there is a rule referred to as the “use it or lose it” rule. Limpopo have now felt the full might of this rule and lost R559.5 million in Human Settlements Development Grant. The DA welcomes this action and have long been propagating that effective governance should be rewarded and so ineffective governance should be punished. It is encouraging to note that as a result of this, KZN will receive R236 million for Human Settlement. We trust that this substantial amount will be spent efficiently, effectively and within the specified time frame to the benefit of our citizens in the province of KZN. One of the proposed adjustments of grave concern to the DA, which has been raised at portfolio level, is the R18.7 million paid by CoGTA to Umgungundlovu District Municipality in 2011/12 and 2012/13 for a Material Recovery and Composting facility – a joint project with Msunduzi Municipality. The project failed to take off and the R18.7 million now needs to be refunded to CoGTA. The question is why the funds were prematurely transferred by CoGTA to the District municipality prior to the implementation of the project. We also want to know – will the district refund the interest on the R18.7 million which it has benefited from despite failing to implement the project? As KZN’s official opposition, the DA is committed to its oversight role in all areas of government. We expect answers to these questions which we will report back to the people of the province. [END] ##################################################################################### Scanned by MailMarshal – M86 Security’s comprehensive email content security solution. Download a free evaluation of MailMarshal at www.m86security.com #####################################################################################