R1.2bn grant to aid disaster-affected provinces

The South African government has allocated R1.2bn to the Disaster Recovery Grant in aid of municipalities affected by recent disasters.
Image credit: Kelly Sikkema on Unsplash
Image credit: Kelly Sikkema on Unsplash

This decision follows severe snowfall and flooding that occurred earlier this year in the provinces of KwaZulu-Natal, Free State, and the heavily impacted Eastern Cape.

The announcement comes after a devastating disaster in June, which caused an estimated R6.3bn in infrastructure damage, leaving many communities struggling with loss and destruction.

The Minister of Cooperative Governance and Traditional Affairs (CoGTA) Velenkosini Hlabisa announced that the Eastern Cape will receive the largest portion of the relief funds.

By the end of July, Hlabisa stated that the province would receive an initial allocation of R50m, with a substantial additional amount of R504m to be distributed in August.

Affected areas

Municipalities such as the OR Tambo district and the Amatole district will receive R30m and R20m, respectively, which will provide crucial support for reconstruction efforts.

Last month, the Eastern Cape experienced devastating impacts, with torrential rains leading to unprecedented floods in districts such as Nelson Mandela Bay, Chris Hani, and OR Tambo.

This tragedy claimed the lives of approximately 103 people in the Eastern Cape.

According to the latest figures, the OR Tambo district has the most fatalities with 79 victims, followed by the Amathole district with 10, with five each in the Alfred Nzo and Chris Hani districts, two each in Joe Gqabi and Sarah Baartman districts.

In total, in June, South Africa lost 107 lives because of the disaster, of which three were in KwaZulu-Natal and one in the Western Cape.

Follow early warnings

“Government urges communities in affected areas to remain alert and follow early warning advisories issued by the South African Weather Service, as a critical measure to safeguard lives, property, and livelihoods,” the minister said.

According to Hlabisa, after the National Disaster Management Centre (NDMC) transfers funds, municipalities are expected to use these resources promptly.

“Recipients of the funds must follow established reporting protocols and use the required templates to ensure accountability in their financial disclosures,” he explained.

Planned phases

Hlabisa announced that the funding will be released in carefully planned phases.

The first tranche of R151.3m in provincial response grants will be distributed on 11 July, followed by a R395m municipal response grant on 18 July 2025.

In addition, the minister said a more substantial allocation of R708.9m is set for 28 August 2025, of which R504m will go to the Eastern Cape.

“We want all municipalities to know ahead that this money is coming, and they must activate their project processes,” Hlabisa stated, stressing the importance of transparency and strategic planning.

Financial accountability

The minister used the platform to highlight financial accountability.

He said that municipalities that received previous disaster relief funds will be required to provide comprehensive reports detailing the utilisation of those funds.

The minister warned that failure to do so could result in the suspension of future allocations.

“If there is no accountability, money will not be released. It will be as simple as that,” he cautioned.

Meanwhile, he said the NDMC plans to convene a joint meeting with premiers, MECs, and mayors to ensure rigorous oversight and transparency.

Recognising the potential for price inflation and mismanagement, the minister said technical teams are currently on the ground verifying infrastructure damage.

Hlabisa believes that the goal is not just to restore, but to 'build back better' through meticulous project management and quality assurance.

Areas of concern

In addition, he highlighted several areas of concern, including poor infrastructure planning, inadequate workmanship, and the diversion of funds from intended projects.

To address these shortcomings, the minister said the NDMC will collaborate closely with the municipal infrastructure support agency and various sector departments.

He also touched on a commitment to community recovery and resilience.

By ensuring transparent, accountable, and strategic fund allocation, the government aims to not just repair infrastructure but to restore hope and dignity to communities devastated by natural disasters.

“Furthermore, funding that reverts to the national fiscus exposes communities to risks, and there is a concerning trend of non-reporting and a lack of accountability for the funding allocated to provinces and municipalities.”

As the country moves forward, the minister said the comprehensive disaster relief plan represents a critical step towards rebuilding and strengthening municipal infrastructure.

“We are actively working to enhance response and recovery operations in the wake of disasters. We recognise the frustrations that communities often face during these trying times, and we are committed to addressing the significant challenges and uncertainties that can arise.”

In August, the minister is expected to announce the funds that will be redirected to communities affected by the June floods.


 
For more, visit: https://www.bizcommunity.com