Govan Mbeki Municipal councillors differ in the transfer of slush fund to LED
Opposition parties outvoted the SNC by 26-23.
Councillors from other parties in the Govan Mbeki Municipality council have objected to a proposal to revoke the use of surplus funds and rather have it go to the Municipality Local Economic Development office for the local economic development programme.
This money was intended to support small, medium and micro enterprises (SMMEs) through the SMME Adjudication Committee, comprising officials from the municipality, the Small Enterprise Development Agency, the National Youth Development Agency, and the Gert Sibande District Municipality.
The matter was raised during an ordinary council meeting held on April 30, where MMC for Civil and Engineering Aron Mbokazi, who was acting mayor at the time, presented the report before council.
Mbokazi explained that in 2015, the municipality entered into a joint implementation agreement with the Department of Economic Development and Tourism to establish an industrial park and a fly ash brick manufacturing incubation project.
According to Mbokazi, the department transferred R4.8m to the municipality, while the municipality contributed R300 000 towards the project.
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A company was later appointed to conduct a feasibility study for the industrial park, which was completed and tabled before the council.
“The cost of the feasibility study was below the projected budget and realised a saving of R300 000.
“The Department of Economic Development and Tourism was informed of this saving and approval was sought to use the money for a SMME support programme,” said Mbokazi.
He stated that in November 2024, the council approved a resolution allowing the savings to be redirected to support SMMEs within the municipality, subject to the department’s approval.
The resolution also established an SMME Adjudication Committee comprising officials from the municipality, the Small Enterprise Development Agency, the National Youth Development Agency, and the Gert Sibande District Municipality.
The committee was expected to oversee applications and monitor and evaluate the procurement of equipment and materials under the programme.
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However, Mbokazi told the council that numerous attempts to convene the committee’s meetings had failed, making it impossible to implement the programme as approved.
He proposed that the council acknowledge that the committee had failed to convene any meetings since its establishment and that Resolution A138/11/2024 be revoked in its entirety.
Mbokazi proposed that the R300 000 savings instead be used within the municipality’s Local Economic Development (LED) section for LED-related programmes and activities through normal administrative processes.
The proposal was met with resistance from opposition parties, who argued against revoking the SMME support resolution and expressed concern that the original intention of directly supporting township and small businesses could be undermined.
Because of the descending views, the council speaker took the matter to a vote, the DA, EFF and VF plus won by 26 votes, not for the slush fund to be referred to the Municipality LED office and remain with the committee, while the ANC, who voted for the fund to be referred to the LED office, secured only 23 votes.
