R1.4bn relief fund: 'I want transparency' says Hlabisa

Co-operative governance and traditional affairs minister Velenkosini Hlabisa is pushing for stricter accountability and transparency to ensure disaster relief funds are used effectively by municipalities.

Announcing the allocation of R1.4bn in disaster relief funds for flood-hit provinces, Hlabisa emphasised that municipalities would be required to provide detailed monthly and quarterly reports, bank statements, and the aims of spending breakdowns.

This is to prevent the misuse of allocated funds and to ensure timely disaster recovery – an urgent priority given the history of funds being diverted or left unspent due to inefficiencies.

Hlabisa said these measures, which include ensuring the immediate use of the money on transfer, have been put in place to ensure municipalities use the money for its intended purposes, as it is often used for salaries instead.

“The issues we are facing underscore the urgent need for improved governance, better project planning, and enhanced oversight, along with stronger accountability at all levels of implementation,” he said. “The department, in collaboration with relevant departments and the Municipal Infrastructure Support Agent, is intensifying efforts to assist municipalities and provinces in addressing these challenges. Our aim is to ensure that infrastructure investments lead to tangible improvements in the lives of our communities.

“Municipalities that receive funds are required to report on their usage monthly. For example, if a municipality receives R15m, they must detail how much has been spent  – say, R1m – and how the remaining R14m is allocated.

“They [municipalities] should also attach bank account statements showing the current balance of the funds. This monitoring includes both monthly and quarterly reports.”

More than 60 municipalities and provincial departments have received the grants.

Hlabisa said there were concerns about how municipalities were using the funds, including poor infrastructure planning, lack of long-term resilience, substandard workmanship, and inadequate project design. 

Delays in appointing service providers, inefficient procurement processes, poor accountability, and inadequate reporting on fund utilisation have led to unspent funds being returned to the National Treasury, depriving communities of essential infrastructure and services. 

Hlabisa said some municipalities often fall short on monthly reporting. “Some ... may indicate they are still in the procurement process during the initial months, and their reports should reflect this status. It’s crucial that these funds are used appropriately and not diverted for other purposes, such as salaries,” he said.

The provincial disaster response grant of R149m was transferred on February 6 to the Eastern Cape, KwaZulu-Natal, Mpumalanga and Limpopo for repairing damaged provincial infrastructure. 

On March 5, the municipal disaster recovery grant of R231m was allocated to Limpopo, Eastern Cape, KwaZulu-Natal and Mpumalanga for infrastructure repairs. The greater Tzaneen municipality in Limpopo received R8.2m, while the Polokwane municipality received R3.8m.

A second municipal disaster recovery grant of R669m was transferred on March 18 to affected municipalities in the Free State, KwaZulu-Natal, Eastern Cape, Limpopo, and Mpumalanga.  

The Western Cape received R947m in February as part of the provincial “unavoidable and unforeseeable” allocation, with other provinces still being considered. 

Hlabisa said the misuse of funds results in the amount being recovered from future equitable share allocations. 

“If a municipality cannot utilise the funds as intended, it’s better to return them rather than repurpose them improperly. We emphasise transparency so that communities are aware of the funds received for disaster-related purposes and can hold their municipalities accountable. 

“Councillors should proactively review business plans, monitor project progress, and ensure that reports confirm the completion of projects like road construction. This diligence ensures that future allocations bring more relief to our communities,” he said. 

A Disaster Response Grant was allocated on March 24 to municipalities affected by incidents in December 2024 and January. KwaZulu-Natal received R76m, Mpumalanga R11m, and the Free State R10m.

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