According to reports, following a letter from the National Treasury, the Amajuba District Municipality is in a troublesome situation. The letter states that the Department will be stopping some of the funding destined for the Municipality.
As per the letter from Treasury, the Department will be stopping funding due to underperformance/non-compliance on the Municipal Infrastructure Grant and the Water Services Infrastructure Grant.
This is bearing in mind that the Amajuba District Municipality oversees Newcastle Municipality, eMadlangeni Municipality and Dannhauser Municipality.
The Department’s letter stated that it intended to invoke section 18 of DoRA (Division of Revenue Act) which provides that the National Treasury may in its discretion or on request of a transferring officer or receiving officer stop the transfer of a Schedule B or 5B allocation, or a portion thereof to a municipality if National Treasury anticipates that a municipality shall substantially underspend on the allocation, or any programme, partially or fully funded by the allocation in the 2022/2023 financial year.
This apparently follows the 2022/2023 mid-year expenditure reports in terms of section 10 of the 2022 Division of Revenue Act (Act No. 5 of 2022) (DoRA) as amended by the Revenue Amendment Act (Act No.15 of 2022) (DoRAA) and section 72 of the Municipal Finance Management Act, 2003 (Act NO.56 of 2003).
With this in mind, the letter, dated 17 February 2023, said, “National Treasury hereby proposes that a portion of the 2022/23 allocation to your municipality (Amajuba District Municipality) in respect of Municipal Infrastructure Grant (MIG) and the Water Services Infrastructure Grant (WSIG) as gazetted in the 2022 DoRA be stopped due to underperformance of the grant allocation.”
The Department further highlighted that its letter served as a formal notification by the National Treasury of its intention to stop the above-mentioned allocations in terms of section 18 of the 2022 DoRA and section 38 of the MFMA.
Apparently, Treasury informed the District Municipality of its intention to stop an amount of R1.9 million from the District Municipality’s 2022/2023 MIG allocation of R46.6 million, and an amount of R13.1 million from the Municipality’s 2022/2023 WSIG allocation of R70 million respectively, in terms of section 18 of the 2022 DoRA.
“This decision will not in any way affect future allocations to your municipality,” wrote the National Treasury.
Furthermore, the Department requested that the Amajuba Municipality responds with motivation, on a number of items, which included the following:
- Why the expenditure reported as of 31 December 2022 is below 40%
- Representation of the cash coverage for grants transferred (Liquidity Ratio).
- Representation of the initial cash flow projections against actual performance.
The Municipality had seven days to respond to the National Treasury with a written representation regarding the proposed stopping of the aforementioned allocations.
This is a developing story and the Amajuba District Municipality is set to respond to the situation,
What are your thoughts on the above-mentioned? Share your views in the comment section below.
Comments 3
It is a case of Idiots and Counts
As the local small sub contractor I can be glad if the money can be taken,, since Monday we stopped the site at Utrecht to function because of corruption that is happening,,how can the official of Amajuba represent the main contractor to appointment of local contractors that they don’t qualify to work an don’t have relevant documents,,it show’s that this project is not controlled by the owner they just use the name,, after we engaged the leadership the official request urgent meeting tomorrow at 10am but when we called him yesterday he said he will be available on the 10 of march,, corruption is the problem in this project of emadlangeni
As labour in Newcastle Municipality I am very much glad to have an opportunity to moment.
In Newcastle Municipality there’s a main contractor with the name Moteko Construction. They are very popular to Newcastle Municipality the are busy wit many tenders for Newcastle Municipality but they exploiting people most of the time.
They have put us as labour in their database to be employ under subcontractors. For sure we get employed as labour under their subcontractors. The problem we encountered with Moteko construction they not following the criteria of hiring the subcontractors. Most of their subcontractors are not complaint .
Only to find that they doing wallplate without qualifications end Motrko is exploiting those subcontractors when comed to the rate . The subcontractors will get the payment a nd not pay us as labour. Then they will decide not come bag we as labours we will loose money and job after we have did budget.
On the other hand you find that the person who is the director at Moteko he is doing subcontracting computing with the subcontractors. The subcontractors will be kept on hold by Moteko from site for three months and the labours will also suffer but the labours who is working for director subcontractors always working.
The Ward councillor are the one who is in charge but when we report they ignored the matter. I am here to request the National Treasury and national Cogta to remove the Ward councillor in tenders because the subcontractors who employed by the giants contractors must be connected with it ward councillor .
The Municipalities must involved their engineers to oversee the process if it is going accordingly. The ward councillor is lay persons.