3 days ago
Nelson Mandela Bay to receive R100m in grant funding after plea to minister
Nelson Mandela Bay is set to receive more than R100m for its delayed informal settlement upgrading grant funds after deputy mayor Gary van Niekerk's urgent plea to human settlements minister Thembi Simelane last week.
Van Niekerk wrote to Simelane, urging her to approve business plans for two grants so they could be paid into the city's bank accounts.
The metro was expecting a R139.4m tranche for the Urban Settlements Development Grant (USDG) and a R104.8m tranche for the informal settlement upgrading grant.
The money was meant to be paid on July 22 and 24, respectively.
In response, Simelane said the 2025/2026 ISUPG business plan had been approved with requirements under the Division of Revenue Act.
However, the July 30 correspondence made no mention of the USDG funds.
'Noncompliance with the provisions may result in the withholding, reallocation or reprioritisation of funds as prescribed under the Division of Revenue Act.,' she said in her letter.
'The department will undertake quarterly engagements with the city to ensure plans are implemented accordingly and prepare for the 2026/2027 business plans due in August 2025.
'The city must ensure adherence to the prescripts of the Division of Revenue Act applicable for the 2025/2026 financial year, programmes in the Human Settlement Code, 2009 and no expenditures must be incurred outside the policy, regulations and framework that govern human settlements planning and development.'
Some of the projects affected by the delay include the installation of toilets in Motherwell, the construction of roads in Bethelsdorp extensions 32, 34 and 36, as well as relocation plans for residents in KwaNobuhle and McCarthy in Kariega.
For the 2025/2026 financial year, the metro is expecting a total of R663.8m from the USDG and R377.8m from the ISUPG.
According to the minister's report, the metro's business plan for the USDG funds must align with the approved 2025/2026 Division of Revenue Act allocation of R663.8m.
However, Simelane wrote that the metro submitted a procurement plan with a budget of R557.7m, which she said was not aligned to the Division of Revenue Act allocation.
The outer-year allocations of R694.1m for 2026/2027 and R725.5m for 2027/2028 are also consistent with the MTEF projections.
'The metro has planned to deliver 1,200 serviced sites in the 2025/2026 financial year,' the report read.
'Catalytic projects [include] Jachtvlakte, with a budget of R574.6m, and KwaNobuhle, with R50m allocated, [which] are key catalytic projects supporting bulk infrastructure development in the business plan.'
Van Niekerk, in his capacity as acting mayor, said on Monday he did not expect such a speedy reply.
' I'm ecstatic because we'll be able to start sooner with the projects.
'We know these are conditional grants and we won't spend outside the scope set out by the minister. I'm excited to get things done,' he said.
Asked why the letter did not mention the USDG, Van Niekerk said the city would contact Simelane and the National Treasury soon.
' We're confident the letter relates to both grants.
'This is good news overall and makes one believe in the system again,' he said.
The Herald
