Today's Labour News

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salgaBusinessLive reports that broke municipalities are dipping into their infrastructure grant funds to pay salaries, a concern for the SA Local Government Association (Salga) and the Department of Co-operative Governance and Traditional Affairs (CoGTA).  

The misuse of infrastructure grants is expected to get worse as the Department of Water and Sanitation is increasingly passing on the refurbishment and maintenance of water infrastructure to councils.  CoGTA and the Rural Health Advocacy Project warn that the situation at some municipalities not only undermines service delivery but puts management-level jobs at risk.  Salga has introduced a "differentiated approach" to review municipalities on a case-by-case basis to assess the extent to which they are financially distressed and how the organisation can help them to balance their obligations so as to spend their infrastructure grants in appropriate ways.    CoGTA has tried to intervene by diverting funds to district municipalities, withholding the equitable share or transferring the money to the Municipal Infrastructure Support Agent, but "we have still not seen the desired result".

  • Read this report by Khulekani Magubane in full at BusinessLive


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