Letter: Poor planning is costly

Cllr Madhun Sobram Sing, DA caucus leader for KwaDukuza and Ilembe writes: Despite numerous calls by the DA to spend grant allocation within the financial year, or other years if the projects were spread over several years, KDM failed miserably and took things for granted that funds not spent in the financial year will automatically be rolled over in the next financial year.

A hard-hitting letter to KDM from national treasury states: “Your request to roll over the unspent amount of R 18. 1 million into the 2018/19 financial year by your municipality is NOT approved. The rejection is with respect to the Integrated National Electrification Programme.”

The letter is signed by Malijeng Ngqaleni, deputy director-general: intergovernmental relations.

In terms of the Municipal Finance Management Act, strict guidelines are set out. It was noted that the grant had also included a rollover from the previous financial year to the tune of R 8 million, which had not been fully utilised.

Rollover of rollovers are not supported in terms of circular 91 of the MFMA.

This has dealt a heavy blow for KDM in completing the projects with electrification. To find an additional R18.1 million is no easy task.

Poor planning, coordination and commitment has led to this failure.

Although Eskom is cited as delaying the process, especially in rural areas, you cannot have a situation when little or no progress is made in utilising the grant allocation. This is a wake-up call for KDM and the accounting officer.

The municipal manager cannot be happy with this outcome.

A turnaround strategy to utilise all grant funding must be put in place and there should be consequences for management if executive directors are found wanting in their line of duty.

Worst still is having to return R15 million to the national treasury before the end of the month. In normal circumstance grants returned are re-allocated to better performing municipalities.

What a loss to communities waiting for service delivery!