‘Inadequate funding for provinces a concern’


By REGINALD KANYANE

4 December– The Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) said it has received a briefing from the Minister of Cooperative Governance, and Traditional Affairs (COGTA), Velenkosini Hlabisa on several key issues on Tuesday evening.

The committee said this includes inadequate disaster funding to provinces, an update on resetting electricity meters, the department’s role in regulating spaza shops, and the Traditional and Khoi-San Leaders Bill that is still not in parliament for processing.

The Chairperson of Committee, Dr Zweli Mkhize said they heard that the department made a submission to the National Treasury for disaster funding for five provinces most affected by disasters, and only one province – the Western Cape – received an allocation. Mkhize said the committee then invited the National Treasury and the department to clarify this issue.

“On Tuesday, the minister told the committee that the department asked for R11.9 billion from the National Treasury to assist five provinces hit hard by disasters, but only R1.6 billion was received. According to the minister, the National Treasury decides how much to allocate and where.

“In a letter, the Minister of Finance said that the National Treasury has initiated a review of the assessment and recommendation process for disaster funding and allocation and has contracted the Development Bank of South Africa (DBSA) to assist,” he said.

Mkhize further said as the process is underway, the Finance Minister asked for the meeting to be deferred to a later date. He added that the committee noted that a further process is underway but remained concerned that there is still no adequate explanation for the decision.

“The fact that there is another process to address problems is welcomed, but it is not quite a response to the issue that we are raising. So, if the Treasury and the Minister of COGTA cannot explain that, it is a matter that remains hanging for us.

“Committee members also sought more information about disaster funding from previous years and issues raised by the department regarding the provinces’ ability to spend the money. We also asked that this information be provided in the new year,” said Mkhize.

He said they need more clarification, and if the matter needs to be corrected, they need a corrective approach.

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