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NMB Kisses R242.3 Million Goodbye

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Following a letter of demand from National Treasury concluding that an amount of R242.3 million remains unspent by the Nelson Mandela Bay Municipality and should be repaid to the NRF by 18 November 2022 the current coalition government says that they have put procedures in place to stop this happening again.

The unspent amount was in respect of the Urban Settlements Development Grant (R31.9 million, the municipality requested an amount less than what is unspent as per AFS), Informal Settlements Upgrading Grant (R98.7 million, the municipality requested an amount less than what is unspent as per AFS), Public Transport Network Grant (R76.9 million, the municipality did not request roll over for this grant), Neighbourhood Development Partnership Grant (R23.4 million, the municipality did not request roll over for this grant), Programme, and Project Preparation Support Grant (R10.9 million, the municipality did not request roll over for this grant).

Cllr Retief Odendaal, NMB Executive Mayor, said:

The Nelson Mandela Bay multi-party coalition government has taken immediate steps to ensure that the municipality will not lose out on millions of rands of much-needed grant funding in the future.

Nelson Mandela Bay Executive Mayor, Cllr Retief Odendaal, said the Metro lost R242.3 million in unspent conditional grant funding in the 2021/22 financial year and now has to set about ensuring that this does not happen again.

Mayor Odendaal said the unspent amounts are in respect of the Urban Settlements Development Grant (R31.9 million), Informal Settlements Upgrading Grant (R98.7 million), Public Transport Network Grant (R76.9 million), Neighbourhood Development Partnership Grant (R23.4 million), and the Project Preparation Support Grant (R10.9 million).

The mayor, who previously served as the Metro’s MMC for Budget and Treasury between 2016 and 2018, has placed the Budget and Treasury portfolio under the mayor’s office and has already taken steps to ensure that grant spending in the current financial year is maximised.

These steps include:

  • The Budget Monitoring Forum recently met for the first time since 2020. This committee will sit quarterly to monitor spending and resolve project challenges.
  • As an interim measure, a senior official from Budget and Treasury has been seconded to stabilise the Supply Chain Management Unit and provide solutions to the numerous red tape blockages.
  • Writing to National Treasury to assist with resources to lead the Supply Chain Management Unit and make decisions within policy and legislative framework.
  • Established a grant funding ‘Accelerating Service Delivery Forum’ to provide strategic interventions where grant funding spending is concerned.

“While I was the MMC for Budget and Treasury, we turned the finances of the Metro around, and I can assure you that we will do it again.

“In 2017, we spent 100 % of our funding and were rewarded with R174 million in additional funding from National Treasury. In 2018 we again achieved 100% spend and were rewarded with a further R200 million in additional funding,” added the mayor.

“To get Nelson Mandela Bay working again, it is important that we fix the basics, and financial prudency is key in doing so.”

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.