Treasury withholds Bay funding
National Treasury has withheld R330m in equitable share funding from the Nelson Mandela Bay Municipality.
The money, which was meant to be transferred toward the end of 2018, supplements the money the municipality receives from ratepayers.
While no formal reasons have been given to the city for the non-payment of the second tranche of a total R1.2bn equitable share, acting city manager Peter Neilson said officials at the Treasury hinted that it may have to do with the fact that the metro did not have a permanent CFO.
He said there was also an indication that it could be because the city has missed several deadlines to be Mscoa compliant (a financial accounting system) due to technical challenges and budget constraints.
Neilson said he along with acting CFO Jackson Ngcelwane would meet with Treasury officials on Thursday to appeal to them to release the money.
At a press conference on Monday, the DA alleged that the relationship between Treasury and the municipality had broken down and was irretrievable.
DA Eastern Cape leader Nqaba Bhanga said: “Details of the exact reasons as to why they elected to withhold the R330 Million in grant funding is still not clear, but it's safe to say that given the fact that the ANC in NMB refers to Treasury as a ‘Rogue Unit’ that there is no love lost between the Bobani and ANC-led administration and National Treasury,” Bhanga said.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
FREE TO READ | Just register if you’re new, or sign in.
Questions or problems? Email helpdesk@heraldlive.co.za or call 0860 52 52 00.