The Department of Cooperative Governance is concerned about underspending in local government.
This has led to Parliament's Select Committee of Finance saying this is hampering economic growth and job creation.
According to Cooperative Governance Minister Zweli Mkhize, R3.4 billion in Municipal Infrastructure Grant transfers were stopped and reallocated from underspending municipalities over the past five years.
To heal a disease, one needs to diagnose it properly. The reality is that many of these municipalities that are underspending, find themselves in structural and systemic conditions that really are very difficult.— Andries Nel, Deputy Minister of Cooperative Governance and Traditional Affairs
Many of them objectively speaking are unviable, they are located in rural areas; they cover vast areas; they are located in former homeland areas; there is very little economic activity.— Andries Nel, Deputy Minister of Cooperative Governance and Traditional Affairs
Listen to what the government will be doing to assist these municipalities...