Impediments to the spending of the municipal infrastructure grant in Lepelle-Nkumpi Municipality
Date
2022
Authors
Tshoshi, Manare Martin
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Unspent conditional grants, particularly the Municipal Infrastructure Grant, is a common problem in South African municipalities. The provinces of KwaZulu-Natal, the Eastern Cape and Limpopo received a large portion of the MIG allocation for the period 2011 to 2016 (National Treasury, 2017). Reporting on municipal performance in Limpopo province, COGHSTA in 2013 highlighted that over 5 million rand of MIG funds in 2012/13 financial year was taken back to the National Treasury from a total of 30 municipalities (25 local and five district municipalities), reason being that these municipalities failed to expend the allocated funds. This included Lepelle-Nkumpi Municipality. The study intended to identify impediments to spending MIG funds in South Africa’s Lepelle-Nkumpi Local Municipality. A qualitative research methodology was applied with data largely collected from documents and key respondents to better understand the studied phenomenon. Purposive sampling technique was employed to choose relevant officials or participants in the municipality. Primary findings of the study were that the impediments to the spending of MIG funds in Lepelle-Nkumpi Municipality relate to lack of forward planning relating to allocations, supply chain processes, community unrest and political instability. Major recommendations were that the municipality needs to avoid late or haphazard planning, as this generally affects the supply chain process of appointing service providers on time and causes unnecessary delays as a result of protracted SCM processes. Political changes need to be managed properly as they stall progress made insofar as spending of MIG funds is concerned.
Description
A research report submitted in fulfilment of the requirements for the degree of Master of Management to the Faculty of Commerce, Law and Management, School of Governance, University of the Witwatersrand, 2022
Keywords
UCTD, Australian Community Development Grant, Impediments, Municipal Infrastructure Grant, Lepelle-Nkumpi Municipality, Conditional grants