EThekwini Municipality will be prioritising repairs and restoration of damaged infrastructure, reported eThekwini Mayor Councillor Mxolisi Kaunda during his Municipal Financial Management Act (MFMA) report to Council on 9 November.

The Mayor said this was coupled with the approval of grant funding by National Treasury allocated for the damages caused by the torrential tornado disaster in June this year. 

 

The floods that occurred in both 2022 and 2023 inflicted significant structural damage and disrupted essential infrastructure throughout the City. While immediate relief and shelter were provided to those affected, financial constraints hindered the City’s ability to promptly and comprehensively restore critical infrastructure.

 

The successful application by the City’s leadership has warranted the approval by National Treasury to rollover the Municipal Disaster Recovery Grant, the Project Preparation Support Grant, and the Neighbourhood Development Partnership Grant for the Public Employment Programme totalling R1.6 billion. 

 

After extensive conditional assessments, an estimated amount of R543 million has been approved to implement the necessary interventions for infrastructure restoration after the June 2023 floods. 

 

The report tabled at Council today also recommended that the City’s Human Settlements Unit explore suitable solutions to relocate approximately 160 families affected by floods. 

 

In other notable reports and approvals at the Full Council meeting:

 

*PROGRESS REPORT ON CITY’S R1.5 BILLION IN BORROWINGS*

 

After extensive debate at the virtual Council meeting, the Municipality wishes to outline that the report tabled today was merely a progress report on the Council decision of 31 May 2023 approving the loan borrowing amount of R1.5 billion which will be a supplement budget for capital projects. It was a progress report outlining that the Municipality is in the process of issuing a Request for Proposal (RFP) inviting lenders to provide an annuity loan. It must be noted that in fulfilling its financial obligations, the City employs a three-pronged strategy, leveraging grants, internal reserves, and borrowings. 

 

For the ongoing fiscal year, 2023/2024, Council has granted its approval for borrowings amounting to R1.5 billion. These funds are pivotal for the realisation of capital expenditure projects that encompass a diverse spectrum of infrastructure improvements. 

 

The securing of R1.5 billion in borrowings is a necessary step towards fulfilling this commitment and ensuring the continued enhancement of the City's services.

 

*MPAC'S EXCEPTIONAL PERFORMANCE RECOGNISED BY COGTA*

 

The Municipal Public Accounts Committee (MPAC) plays a pivotal role in ensuring the responsible allocation of public funds. 

 

Their role in overseeing Unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) has been acknowledged and recognised by the Department of Cooperative Governance and Traditional Affairs (COGTA). 

 

The recent assessment for the first quarter ending September 2023 is testament to MPAC’s commitment and effectiveness in performing their oversight functions.

 

The Municipality applauds this achievement indicating that MPAC is operating at its full functional capacity. 

 

This reflects their commitment to their statutory obligations, oversight of ongoing investigations, oversight of concluded investigations, and their continuous vigilance in overseeing the implementation and tracking of consequence management.

 

ENDS