Question 673 for written reply

MINISTRY FORHUMAN SETTLEMENTS

REPUBLIC OF SOUTH AFRICA

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.:673

DATE OF PUBLICATION: 11 MARCH 2016

Mr S M Gana (DA) to ask the Minister of Human Settlements:

(1)(a) How much (i) money has been transferred through the Municipal Capacity Grant to each Metropolitan municipality to date and (ii) grant money has each specified municipality spent thus far, (b) what kind of programmes has the grant money been spent on by each of the specified municipalities and (c) what are each of the specified municipalities plans to spend the grant;

(2)what (a) will happen to the grant money if it is not spent by the specified municipalities before the end of the 2015-16 municipal financial year and (b) mechanisms will be put in place to improve the capacity of the specified municipalities post the Municipal Capacity Grant? NW788E

REPLY:

(1)(a) (i) and (ii) The table below provides detail of the total funds transferred to each of the Metros and a breakdown of the amounts that were spent by these Metros:

(b) During 2015/16 financial year (as at 31 January 2016), the above-mentioned Municipalities spent the grant funding on the following programmes:

BuffaloCity: Training of staff.

NelsonMandelaBay: Compensation of Employees/ Salaries, Rental – ExternalBuildings and Office Equipment.

Mangaung: Compensation of Employees/Salaries and Consultants.

Ekurhuleni: Consultants and Risk Management.

City of Johannesburg: Compensation of Employees / Salaries.

City of Tshwane: Compensation of Employees / Salaries and Travel & Accommodation.

EThekwini: Compensation of Employees/Salaries, Training of Staff and Consultants.

City of Cape Town: Compensation of Employees / Salaries and Office Equipment.

(c) The municipalities’ plans are to spend the grant as per Annexure A attached hereto.

(2)(a) Section 22 (1) of the 2015 Division of Revenue Act states that “anyconditional allocation, or a portion thereof, that is not spent at the end of the 2015/16 financial year reverts to the National Revenue Fund, unless the roll-over of the allocation is approved by National Treasury”.

(b)The Municipal Human Settlements Capacity Grant will be discontinued with effect from 2016/17. The National Treasury in consultation with the Provinces plans to allocate a maximum of three per cent (3%) of the Urban Settlements Development Grant (USDG) to procure capacity to support the implementation of human settlements programme output as contained in the Medium Term Strategic Framework (MTSF).