Covid-19 cash a slap in the face — councils

● Salga president slams ‘impractical and insufficient’ allocations

SA Local Government Association president Thembi Nkadimeng has slammed the Treasury’s R252m municipal disaster relief fund allocation as a slap in the face for municipalities.

Nkadimeng is also livid at having to wait until August before the R20bn relief announced by President Cyril Ramaphosa lands in the municipalities’ accounts.

The mayor of Polokwane said the Treasury had waited until day 43 of the nationwide lockdown before it announced the allocations to municipalities, which she said were already in distress. Job losses in the wake of Covid-19 have left municipalities unable to meet their financial commitments owing to a dip in revenue and having to provide additional Covid-19-related resources.

In a note, Treasury deputy director-general of intergovernment relations Malijeng Ngqaleni informed co-operative governance and traditional affairs director-general Avril Williamson of the Treasury’s approval for the release of some of the municipal disaster relief grant.

Despite Nkadimeng telling parliament just last week that the R354m relief grant was insufficient, in the communication between the two officials, dated April 29, Ngqaleni said the Treasury was approving R252,080,800 — an adjustment from the requested R250,291,800.

“The Division of Revenue Bill 2020 is still being processed by parliament.

“However, in terms of section 28(1)(b) of the Division of Revenue Act (Act 16 of 2019), if the Division of Revenue Act for the new financial year has not yet commenced by 1 April 2020, the National Treasury may determine that an amount not exceeding 45% of the total amount of each conditional grant allocation may be transferred to the relevant municipalities. As the total amount allocation for the Municipal Disaster Relief Grant in 2019/2020 is R335,488,000, this would mean that up to R150,970,000 is available,” Ngqaleni writes.

Attached to the communication is the Treasury’s allocation per municipality, excluding metropolitan municipalities.

In the Northern Cape, Karoo Hoogland is allocated R21,000 while Khai-Ma is allocated R30,000.

Nkadimeng said the allocations were impractical and insufficient for the demands placed on local government.

“If you look at the allocation which was signed and circulated, it leaves much to be desired.

“For example, out of R30,000, in the case of one municipality in the Northern Cape which has nine councillors and 140 municipal workers, you must fumigate a taxi rank, you must have masks, in some instances face shields.

“They must use that money for the next six months and they still have their ordinary service which they must deliver.

“It is a slap in the face for municipalities, which is a sphere that is closest to the people,” Nkadimeng said.

“On the R20bn, we are told that it will not be distributed until it has been taken through the process of appropriation by parliament, which will only happen in July.

“As municipalities, we are expected to respond now.

“If it is viewed as critical as the department of health — the allocation to health was made without waiting for the bill — the same should be possible for municipalities.

“We are expected, without any intervention, to provide ordinary services, and now Covid-related ones as well.

“Our expectation was that the relief fund would go a long way to cushioning municipalities but how does R30,000 sustain you for six months?”

One of the bigger items of expenditure which some municipalities must pick up is homeless shelters, which require support services.

“There is a contest between the department of social development and municipalities over homeless shelters and who is responsible for them.

“The reality is that municipalities end up doing the heavy lifting.

“I have a centre in my city for the province.

“We ended up having to provide food, shelter and security for the centre.

“Some homeless people have health issues such as substance abuse issues and mental health issues, so you need things like social workers on site.

“One of our volunteers was assaulted by someone at a homeless shelter; now you have a medical expense as well,” Nkadimeng said.

She said she was preparing for an engagement with the department of co-operative governance and traditional affairs and the Treasury on how to deal with municipalities in a more nuanced way — one that considered their needs.

She said the allocations did not correspond with “business plans”, which the department had requested from municipalities to give an overview of their needs.