National treasury has demanded KwaDukuza municipality return R18 million of unspent grants allocated for electricity upgrades.
Two weeks ago, treasury turned down an application from KDM to roll over R10 million which had not been spent in 2017 and more than R8 million from 2016.
The municipality had said that the money was to be used to electrify rural areas in Sakhamkhanya, Mdlebeni, Twele, Driefontein and Mahlabathini.
Infrastructure upgrades were also planned for other areas where problems with substations have been causing recurring power outages.
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KDM media liaison Sipho Mkhize blamed the non-expenditure on delays caused by Eskom in approving the project designs. In 2018, information on the number of households and budget allocations to specific areas also went missing.
“The treasury grant that was not rolled over relates to two electrification projects that the municipality cannot roll out due to the areas in concern being in Eskom supply areas. The municipality has not received authorisation from Eskom which has lead to the funding not being utilised and subsequently not being rolled over,” said Mkhize.
DA caucus leader Madhun Sing said the return of the R18 million would be a massive blow to the municipality, which would probably have to dig into its reserves to complete the projects.
“To find an additional R18 million is no easy task. Poor planning, coordination and commitment led to this failure.
“Although Eskom is cited as delaying the process, you cannot, especially in rural areas, have a situation where no progress is made in utilising the grant.
“What a loss to communities waiting for service delivery.”
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