Environmental Affairs and Development Planning:
1. Whether any municipalities in the province utilised grant funding for operational purposes in the past two years; if so, (a) what are the details of these municipalities and (b) which capital projects were affected as a result of this;
2. whether any municipalities in the province suffered a loss of income during the lockdown period; if so, (a) what was the impact of this financial loss on paying (i) salaries, (ii) Eskom and (iii) other operational expenses and (b) what support did his Department offer to municipalities?
2.1(a) &(b) No, established mechanisms have been put in place by both the Department and COGTA to regularly monitor both Departmental grants and MIG expenditure respectively.
2.2(a) All municipalities in the Province suffered a loss of income during the lockdown period. As industries and businesses closed, massive job losses occurred impacting people’s ability to pay for municipal services, directly impacting most municipalities cash flow status.
However, all municipalities in the Province were able to cover their operational costs. Only 2 municipalities in the Province, namely Cederberg and Kannaland have payment arrangements in place with Eskom. It should be noted that these form part of existing payment arrangements which are being honoured by the said municipalities.
2.2 (b) A special committee has been established in the Province, consisting of Municipal Managers, CFO’s and senior officials from Provincial Treasury and the Department of Local Government to provide guidance on cash flow challenges in the immediate term to municipalities. The committee has also commissioned the University of Stellenbosch with the help of the Hanns Seidel Foundation to research mechanisms and measures to be put in place to ensure municipal viability and sustainability over the medium to long-term.
