08-07-2025
R1. 25 billion in disaster relief for Eastern Cape, KZN, and Free State municipalities
More than 100 people died and there was extensive damage to infrastructure and homes in flooding in the Eastern Cape.
Image: Pedro Mapelo / I'solezwe lesiXhosa
Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa has warned municipalities to use disaster funds promptly and for their intended purposes and not to pay salaries or fund trips.
He made these remarks during a briefing yesterday in Sandton where he provided information on the release of the funds following floods and heavy snowfall that occurred in KwaZulu-Natal, the Free State, and the severely affected Eastern Cape.
A total of R1.255 billion has been allocated for the 2025/26 financial year with the funds to be released in phases. The bulk of the money, about R500 million will go to the Eastern Cape which suffered the most damage to infrastructure and homes.
In KZN, R139 million in disaster relief grants has been allocated for 17 municipalities including the eThekwini Municipality, which suffered extensive damage in recent storms.
In June, a total of 107 lives were lost due to disasters. Of these, 103 were in the Eastern Cape, three in KZN, and one in the Western Cape.
In accordance with applicable legislation, business plans, and approved processes, the municipal disaster response grants will be transferred in phases during this month. The Department is currently awaiting transfer dates from the National Treasury, with preliminary dates set for July 11 and 18.
The minister noted that the majority of the municipalities received the Response or Recovery Grant and the Municipal Disaster Response Grant in March 2025 and have not started implementing the projects. KZN municipalities that will benefit include:
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Zululand: R13m (in addition to R9m received in March 2025)
Abaqulusi: R12m (in addition to R5.4m received in March 2025)
Inkosi Langalibalele: R11m
Newcastle: R11m (in addition to recovery and response grants allocated in March 2025)
eThekwini metro: R9m (in addition to R8m and R1.4 billion previously allocated)
Edumbe: R10m (in addition to R6.8m received in March 2025)
He added that the Disaster Management Act highlights the importance of self-funding for disaster risk management, requiring state organisations to utilise their own resources for disaster interventions. In instances where public infrastructure is damaged, the relevant state organ bears the responsibility for financing the repair costs.
'With regards to disaster grants, adherence to Section 12 of the Division of Revenue Act (DORA) is crucial. The funds disbursed must be utilised exclusively for sanctioned purposes and may not be redirected to unrelated expenditures, such as employee travel,' Hlabisa stated.
The minister said, 'We appreciate the efforts made to utilise the grants appropriately; however, we have identified several key areas of concern regarding their implementation. These include poor infrastructure planning and execution, inadequate workmanship, diversion or alteration of the scope of work, delays in appointing service providers that lead to municipalities underperforming, and the misallocation of funds towards operational matters instead of the designated projects."
He also noted a significant lack of monitoring and contract management by implementing agents, as well as projects being underdesigned, which makes the infrastructure vulnerable to further damage.
Zululand mayor, Michael Khumalo, welcomed the municipality's allocation.
'This will bring much-needed relief to the people of Zululand. The grant will go a long way in accelerating efforts to mitigate disaster risks. Zululand has previously experienced challenges due to heavy rain, which resulted in significant damage to water infrastructure. As the municipality, we pledge to utilise this grant promptly and responsibly by following procedures and protocols to ensure accountability and transparency,' he said.
ActionSA MP Alan Beesley said it was imperative is that the funds are used promptly and in a cost-effective manner.
"For far too long, disaster grants have been plagued by time delays and dubious procurement. Cogta must ensure there is proper accountability for these grants and that there are serious consequences when these grants are not used as intended.'
KZN Cogta MEC Thulasizwe Buthelezi said the allocation for the province followed applications from KZN municipalities which had been impacted by incidents resulting in damage that would cost billions of rand to fix.
