The Theewaterskloof Municipality has come under scrutiny after it was revealed that R41 million allocated for disaster projects was instead redirected for other purposes, Cape {town} Etc reports.
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Newly elected Mayor Lincoln de Bruyn said the funds were initially earmarked for addressing flood and storm damage. ‘However, it is important to be transparent and upfront in stating that the funds were not solely utilised for these intended purposes.’
Until Wednesday, the municipality was run by a coalition between the ANC, GOOD and Patriotic Alliance. This week, the GOOD party formed a new coalition with the Democratic Alliance (DA) and Socialist Revolutionary Workers Party (SRWP).
‘It appears that the previous governing coalition was of the opinion that they had to redirect these funds for operational purposes as they realised that they faced significant financial challenges,’ DA Mayor De Bruyn said in a statement.
‘The current government does not agree that this was the right decision. We recognise the importance of delivering on the identified projects and remain committed to doing so as our financial situation improves.’
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News24 reports that the National Treasury allocated R114 million to the Western Cape following the September 2023 flooding, which was declared a state of disaster.
The funding was distributed across several municipalities, including the City of Cape Town, Stellenbosch, Overstrand and Langeberg. The money was meant to fund 70 projects across the province.
About 2 000 people from the Theewaterskloof Municipality were displaced. The N2 bridge had washed away and Hermanus Road and all connecting roads were cut off. There were 24 projects in the area that required financial support.
However, Local Government MEC Anton Bredell confirmed that the share that the municipality received is no longer available.
‘We have asked the municipal manager to supply us with the relevant information which we have not yet received.’
‘The Department of Local Government and the Department of Cooperative Governance were present in the meeting during which the information was shared. The matter needs to be investigated.’
According to Isaac Sileku, the DA’s Theewaterskloof constituency head, the municipality faces allegations of serious and gross financial mismanagement, which have brought it close to collapse.
‘An investigation is underway into the R41-million National Disaster Fund that was allocated to Theewaterskloof for relief after the devastating storms in 2023, which was also not utilised for the projects it was intended for.’
‘A further weakening of the municipality’s financial situation is the increase of the municipal bank overdraft to R30 million, which was tabled at the next council meeting.’
The municipality said it was aware of allegations surrounding the R41 million national relief funds and that it was investigating the matter.
‘We will issue a public statement in this regard after the investigation has been completed. The municipality can assure all residents that we remain committed to implementing the earmarked projects.’
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