eThekwini Municipality defends its spending on grants amid financial scrutiny
The eThekwini Municipality has pushed back against a claim that it is failing to spend its municipal grants, saying the management of its finances ranks among the best in the country.
It said under the administrative leadership of City Manager Musa Mbhele, eThekwini continues to be recognised as a top-performing metro in South Africa in terms of financial management.
Recently, the City has come under pressure after members of the Finance Portfolio Committee said that at a recent committee meeting, it emerged that the City has not spent close to a billion rand in grants. These revelations have raised concerns within the business community, who view this as a significant issue given the challenges facing the city.
But the City said its good financial performance was evidenced by National Treasury’s allocation of an additional R293 million to the City for the 2024/25 financial year.
Mbhele said this was a “clear vote of confidence in the municipality’s grant management and service delivery capabilities”.
“The city has demonstrated exceptional expenditure rates across key service delivery sectors. As of the 2024/25 financial year, capital budget spending stands at 88%, amounting to over R7 billion,” it said.
It said the expenditure highlights include:
- Housing: 99.27%
- Water: 107.83%
- Sanitation: 83.20%
- Solid Waste: 76.35%
- Engineering: 94.60%
- Electricity: 97.25%
- Transport: 70.67%
- Metro Police: 67.98%
In terms of grant funding, the city has consistently achieved near or above 100% expenditure on major grants over the past five years. For the 2024/25 financial year, the expenditure rates are as follows:
- Urban Settlements Development Grant (USDG): 106%
- Social Housing Grant: 99%
- Housing Hostel Refurbishments Grant: 140%
- Electricity Grant: 116%
- Transport Grant: 207%
- Water Grant: 92%
- Sanitation Grant: 95%
- Engineering Grant: 77%
Mbhele said: “ The City administration has implemented robust oversight mechanisms, including special Executive Management Committee sessions and extended directorate engagements, to ensure that all projects are delivered on time and within budget. These efforts reflect a deep commitment to transparency, accountability, and the well-being of residents.
“We urge all stakeholders to engage constructively and not undermine the significant progress being made in the city. We remain committed to prudent, efficient, and transparent financial management and, more importantly, to the people of eThekwini who rely on quality infrastructure and reliable services,” said Mbhele.