Human Settlements Minister Lindiwe Sisulu says none of the R300 000 000 in available funds will be transferred to the country’s six metros until they have received level three accreditation.
To achieve level three accreditation, a municipality is required to have in place financial systems that are compliant with national specifications. A standard subsidy financial administration package, including reporting systems, management information systems and standard accounting procedures are required.
The Minister was responding to the media statement issued on Sunday by Cape Town Mayor Patricia de Lille, where she was accusing the Minister of withholding R50 million due to the City.
Minister Sisulu said the City of Cape Town and the other five metros – Nelson Mandela Bay, Ekurhuleni, City of Johannesburg, City of Tshwane and eThekwini – had submitted Business Plans to access the Municipal Human Settlements Capacity Grant.
“This is a new grant, the roll-out of which is starting in the currently financial year, for the coming three financial years. The grant is sliced from the national Human Settlement Development Grant to develop capacity for municipalities and metros that have received level three accreditation.
“Level 3 accreditation is approved by Provincial MECs of Human Settlements after municipalities and metros meet the criteria set out in the Human Settlement Code and other policies.
“In total, the grant set aside for the six metros for this financial year is R300 000 000,” Minister Sisulu said.
Minister Sisulu said the total grant set aside for the six metros is allocated as follows:
- Nelson Mandela Metro: R37 707 000
- Ekurhuleni Metro: R52 374 000
- City of Joburg: R59 573 000
- City of Tshwane: R47 506 000
- eThekwini: R52 469 000
- City of Cape Town: R50 370 000
None of the six metros qualified
The Minister said that the nine provincial MECs – who form the Human Settlements MINMEC, chaired by the Minister of Human Settlements – have indicated that none of the six metros have qualified for level three accreditation, and it is thus premature for them to be demanding that funds be transferred to them.
“The respective MECs have requested the six metros to resubmit Business Plans for a review of how they will use the funds. The MECs are concerned that some of these funds will be used to appoint consultants, instead of creating permanent structures in metros to support the fast tracking of housing delivery.
“MINMEC has indicated a serious concern that low quality houses are still being built, whereas municipalities with level 2 accreditation should have the capacity to monitor and ensure that houses are of the best quality.
“MINMEC also expressed its unhappiness with continued underspending and the use of consultants and reminded metros of the importance of developing projects that are in line with the national policy of integrated human settlements,” the Minister said.
She said the decision not to transfer funds to the six metros, until they have received level three accreditation, is in line with the Human Settlements Code.
She encouraged the metros to meet with the provincial MECs to submit all required documents.
The Minister and MECs have met with the South African Local Government Association to explain their position and have asked for an urgent joint MINMEC with the Minister of Local Government and the relevant MECs.
“We call on the City of Cape Town to go to Wale Street to meet the Western Cape MEC of Human Settlements to discuss this matter,” Minister Sisulu said.
Thanks to Ed Richardson from Siyathetha.
Alan Straton
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