Human Settlements Minister Lindiwe Sisulu says no funds will be transferred to the six metros until they have received level-three accreditation.

Sisulu was responding to the media statement issued by Cape Town Mayor Patricia de Lille, accusing the minister of withholding R50 million due to the city.

Minister Sisulu said the City of Cape Town and the other five metros — Nelson Mandela Bay, Ekurhuleni, City of Johannesburg, City of Tshwane and eThekwini — had submitted business plans to access the Municipal Human Settlements Capacity Grant.

“This is a new grant, the roll-out of which is starting in the currently financial year, for the coming three financial years. The grant is sliced from the national Human Settlement Development Grant to develop capacity for municipalities and metros that have received level-three accreditation.

“Level three accreditation is approved by provincial MECs of human settlements after municipalities and metros meet the criteria set out in the Human Settlement Code and other policies.

To achieve level-three accreditation, a municipality is required to have in place financial systems that are compliant with national specifications. A standard subsidy financial administration package, including reporting systems, management information systems and standard accounting procedures are required.

Minister Sisulu said the total grant set aside for the six metros is allocated as follows:

•        Nelson Mandela Metro        R37 707 000

•         Ekurhuleni Metro                 R52 374 000

•         City of Joburg                      R59 573 000

•         City of Tshwane                   R47 506 000

•         eThekwini                            R52 469 000

•         City of Cape Town               R50 370 000

 

None of the six metros qualified

The minister said that the nine provincial MECs — who form the Human Settlements MINMEC, chaired by the Minister of Human Settlements — have indicated that none of the six metros have qualified for level-three accreditation, and it is thus premature for them to be demanding that funds be transferred to them.

“The respective MECs have requested the six metros to resubmit business plans for a review of how they will use the funds. The MECs are concerned that some of these funds will be used to appoint consultants, instead of creating permanent structures in metros to support the fast tracking of housing delivery,” said Sisulu.

“MINMEC has indicated a serious concern that low quality houses are still being built, whereas municipalities with level-two accreditation should have the capacity to monitor and ensure that houses are of the best quality.”

“MINMEC also expressed its unhappiness with continued under-spending and the use of consultants and reminded metros of the importance of developing projects that are in line with the national policy of integrated human settlements,” the minister said.

She encouraged the metros to meet with the provincial MECs to submit all required documents.

 

(SAnews.gov.za)