Municipalities fail to spend mining towns grant

Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) MEC, Basikopo Makamu has raised concern that municipalities in mining areas have failed to utilise a grant amounting to R116 million that was meant for revitalisation of mining towns for the previous financial year.
Makamu stressed that the 2019/20 grant for Limpopo amounts to R145 million and reiterated that he was in talks with the Minister of Human Settlements, Lindiwe Sizulu to keep the money in the province at the end of the current financial year because he was doubtful that municipalities would be able to spend the two grants within the remaining four months. He informed Polokwa­ne Observer during an exclusive interview that municipalities such as Mogalakwena Local Municipality, Fetakgomo-Tubatse Local Municipality, Lephalale Municipality, Thabazimbi Local Municipality and Elias Motsoaledi Local Municipality failed to utilise the 2018/19 mining towns grant amounting to R116 million that the province received from the national Department of Human Settlements.
Mogalakwena Local Municipality
Makamu indicated that this is one municipality that has multi-challenges which are not necessary starting with the current council but the crisis has been there for some time. He further revealed that they have deployed a multidisciplinary task team with various skills such as governance, supply chain management and financial to assess the depth of the challenges at the municipality and compile a report. “I have requested the municipality to give me all the forensic audit reports dating back to 2014/15. The money spent on the audit reports will continue to be regarded as wasteful expenditure because the resolutions have not been implemented. The fruitless expenditure of Mogalakwena can only be reduced if they implement the resolutions in the reports,” Makamu explained.
VBS saga
This has been a challenge in the province but it is now water under the bridge because municipalities have been instructed to reclaim the monies lost, he said. He added that they are supporting the affected municipalities in re-looking at their budgets and revenue enhancement strategies. Vhembe District Municipality as an example has lost R300 million that was invested with VBS Bank, Makamu remarked. He added that mayors who were appointed after government acted on the VBS Mutual Bank matter will attend workshops to increase knowledge to be able to run their respective municipalities.
Human settlements
He emphasised that after his deployment to Coghsta, he pronounced that the department would build 5 911 houses in the current financial year: “I had meetings with the contractors and it was discovered that some are performing fairly well while others are not doing well. We are also working to resolve over 4 000 houses that were rolled-over from the previous financial year. About 3 864 houses from the previous financial year have been completed. It will not be easy to complete the targeted number of houses for 2019/20 because we are left with four months. But our aim is to ensure that we don’t lose money. I am not going to accept a roll-over of more than 1 000 houses.”
Initiation schools
According to Makamu, although Limpopo experienced the unfortunate when losing three boys at initiation schools, the province was still leading in the country. He reiterated that he had discussions with Limpopo House of Traditional Leaders that they have to provide licenses to traditional leaders that can be renewed whenever they want to run an initiation school to reduce a lot of paper work.
Challenges
“The Tubatse land issue has been challenging on my side but we have received a report that was also given to the Standing Committee on Public Accounts for assessment. Corrupt activities are seemingly rife but we will fight and bring perpetrators to book. The land is now regarded irregular because it is not being utilised. When I arrived at the department I found that there was an advanced payment of about R33 million at one project in Marapong in Lephalale. I am waiting for the report that will point at relevant officials for us to deal with them.”

Story: ENDY SENYATSI
>>endy@observer.co.za