COSATU Gauteng warns the City of Tshwane and Johannesburg to avoid grant forfeiture due to underperformance and poor expenditure

16 February 2024

The Congress of South African Trade Unions (COSATU) in Gauteng is deeply troubled by the imminent risk faced by the City of Tshwane and the City of Johannesburg in forfeiting crucial allocated funds for various capital grants. The National Treasury’s recent notification regarding the potential loss of R630 million for the City of Tshwane and slightly over R1 billion for the City of Johannesburg, is unsettling.

The City of Tshwane, led by the Democratic Alliance (DA), is on the verge of losing R630 million earmarked for funding various capital grants. This unfortunate situation stems from the metro’s underperformance and noncompliance with the integrated urban development grants, putting at risk critical projects aimed at improving the lives of residents. COSATU Gauteng emphasizes the importance of effective governance and the responsible use of allocated funds to ensure sustainable development and upliftment of communities.

Following closely on the heels of Tshwane, the City of Johannesburg led by the collusion government and unstable council now finds itself in a similar predicament, becoming the second Gauteng metro facing the threat of losing developmental grants due to poor expenditure on development projects. The National Treasury has signalled its intention to cut the metro’s conditional grants by just over R1 billion. This decision underscores the urgent need for the City of Johannesburg to reassess its financial management practices and prioritize effective utilization of allocated resources for the benefit of its residents.

It is urgently imperative for the municipalities involved to address the issues at hand and collaborate with the National Treasury to rectify the identified shortcomings. The potential loss of these substantial funds raises serious questions about the commitment to good governance, transparency, and accountability in the affected municipalities.

The Federation calls for increased vigilance and oversight by both the provincial and national government to prevent the recurrence of such financial mismanagement in other municipalities. The consequences of losing these grants extend beyond the financial realm, impacting the lives and well-being of the communities that rely on these funds for crucial developmental projects.

We will closely monitor the developments in both municipalities in the hopes that all stakeholders will work collaboratively to find swift and effective solutions to safeguard the future development and prosperity of our cities.

Issued by COSATU Gauteng

Provincial Chairperson (Amos Monyela): 079 493 5002

Provincial Secretary (Louisah Modikwe): 066 182 2402 / 082 297 2659