On 15 February 2022, the National Treasury’s Malijeng Ngqaleni, wrote a letter to the municipality informing it of its intention to stop funding worth millions of rands after the municipality failed to utilise the water services infrastructure and regional bulk infrastructure grants.

READ MORE: National Treasury intends to stop funding to NW municipality

MEC Rosho says in reply to the OFM News inquiry that her department will work with the municipality to ensure that the troubled municipality meets the deadline for submission of a comprehensive response and protect funding that is meant for service delivery. Ngqaleni told the municipality that they had only seven days upon receiving a letter to respond to the national treasury. In a letter sent to the municipality, the Treasury’s Malijeng Ngqaleni says Treasury intends to stop an amount of R36.9 million and R183.3 million from the municipality’s 2021/22 Water Service Infrastructure Grant and Regional Bulk Infrastructure Grant allocations of R66.9 million and R458.3 million respectively.

“It is our understanding that the municipality is expected to make a representation to the National Treasury and on the basis of the evaluation of the reasons, the final determination would be made and as such the Provincial Treasury, working with Cooperative Governance (Cogta), will be providing the necessary support to the municipality so as to fulfill this assignment,” Rosho adds.

OFM News previously reported that the municipality is amongst four ailing municipalities in the province, which illegally invested R314 million of taxpayers’ money with the now-defunct VBS Mutual Bank.

It was found that the Madibeng Local Municipality invested R31 million of their conditional grant, while the Dr Ruth Segomotsi Mompati District Municipality invested R150 million, the Moretele Local Municipality invested R50 million from their water services infrastructure grant, and the Mahikeng Municipality invested over R83 million.

OFM News