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DA-run metros fail to spend R540m meant to help the poor


Honorary Master
Feb 26, 2011
Cape Town - The DA-run Johannesburg and Cape Town metros have lost nearly R540-million meant to cover costs of provision of infrastructure to poor households due to non-performance. Finance Minister Nhlanhla Nene has stopped the transfer of R363m to the City of Johannesburg while Cape Town forfeited about R176m allocated as the urban settlement development grant (USDG).

The allocation of the millions was stopped in terms of the Division of Revenue Act (Dora) after both municipalities failed to spend the money. Section 19 of Dora allows the National Treasury to stop transferring funds if in its discretion or on request of a transferring or receiving officer should there be a “serious or persistent material breach”. It also empowers Treasury to also stop the allocation if it anticipates that a province will substantially underspend on its allocation.



Honorary Master
Aug 23, 2013
How much time did iol give for a reply?
ENCA has it here an hour after the IOL story was published:

"The decision to cut or withhold R176 million of our USDG clearly had nothing to do with our spending performance. This is evidenced by the fact that in June 2017, even before the commencement of our financial year, we received notification of a proposal to withhold R278 million of our USDG allocation.

Then in November 2017, just four months into our current financial year, we received another notification of a proposal to withhold R175.8 million of our USDG," he said.

"Despite being invited to present our plans to spend the USDG funding allocation so that the portfolio committee could make recommendations to the department of human settlements, we received a letter confirming the withholding of R175.8 million on 12 March – the day before our final presentation to the committee. The decision had clearly already been made, regardless of what we were going to present," Herron said.

During the presentations to the committee, the city disputed the suggestion that it was under-performing and pointed to the fact that actual spend was in line with planned spend for the financial year to date. This could be the only basis on which performance was measured.


Well-Known Member
Dec 7, 2017
Why didn't they complain when they were told that the funds will be withheld? Why are they not complaining now that the funds are officially being withheld and rerouted elsewhere?


Expert Member
Feb 10, 2009
So what is worse stealing the money or not spending it?

Guess both is as bad as the other, the money don't get used where it should. so its just an ethical thing.


Senior Member
Aug 5, 2015
So Treasury decided to redirect the money before the DA could present their proposal on how to spend it?

You would swear there was a national election coming up and the ANC needed more loot to pay for their election campaigns.


Executive Member
Mar 17, 2009
I should not have posted it?
you do come across as someone that tries to smear the da at every chance you get.

the article you posted gives you the impression the da is at fault, while the full story in a different article makes it seem as if the goverment/(anc appointees) caused it.

you can post what you like