Salga KZN calls for grant consolidation

THE South African Local Government Association (Salga) in KZN urges National Treasury and the Financial and Fiscal Commission (FFC) to review how municipal infrastructure is funded.

The Municipal infrastructure Grant (MIG) is presently the primary means by which municipal infrastructure is funded.

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However, according to Salga KZN Chairperson Thami Ntuli this fund is ring-fenced primarily for new infrastructure.

“The assumptions that led to the MIG framework are no longer viable,” said Ntuli.
“The MIG was developed assuming rates and other municipal services would generate enough revenue to fund the maintenance of newly-built municipal infrastructure.

“With extreme weather events resulting in floods and mudslides, municipalities cannot keep up with the maintenance demands.

“The weather patterns observed in KZN in recent months are not typical. Over 200mm of rain was recorded in KZN in December. Persistent heavy rain over large parts of [the province] has resulted in widespread flooding and roads collapsing. KZN’s coastal rainfall is particularly affected,” said Ntuli.

The Christian Aid report listed last year’s April floods in KZN as one of the top 10 costliest extreme events in the world.

This after more than 300mm of rain fell across the province.

Ntuli is of the view that the Municipal Disaster Recovery Grant (MDRG) is overstretched and fraught with conditions, yet the MIG is primarily reserved for new infrastructure – even in these extraordinary times.

“Is it not time for consolidation? If there is no new money to establish a Municipal Infrastructure Maintenance Grant (MIMG), the conditions for existing grants can be relaxed to allow for greater focus on the maintenance of existing infrastructure,” said Ntuli.

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