Gamagara Municipality under fire for under-spending on infrastructure grant

THE Democratic Alliance (DA) has called on the Gamagara Municipality to urgently establish a task team to ensure the full utilisation of the Municipal Infrastructure Grant (MIG) after a mid-year review revealed that only 6% of the allocated funds have been spent.

This follows a report by the Auditor-General indicating that the municipality underspent its MIG budget by 67.93% in the previous financial year, leading to the forfeiture of R6.38 million in crucial infrastructure investment.

The consequences of this underspending have been dire for residents, particularly in Olifantshoek, where the community endured a four-month-long water crisis between September and January.

The DA emphasised that the R23 million allocated for the 2024/25 financial year has the potential to improve water supply and address ongoing sewerage issues. A failure to utilise these funds, the party warned, would be “unjustifiable” and could amount to a human rights violation.

A key concern raised by the DA is the prolonged vacancy in the position of Director of Basic Services and Infrastructure, which was only filled on January 6, 2025, after being left unoccupied since June 2024.

While welcoming the new director’s appointment, the DA stressed that this alone would not be enough to ensure the effective use of the grant. The party has submitted a formal request to the municipal manager for the establishment of a dedicated MIG task team to support the director and ensure efficient infrastructure expenditure within the remaining six months of the financial year.

In response to concerns about last year’s underspending, the municipality cited several factors that led to the failure to utilise funds. The primary setback involved the Dibeng Sewer Network Phase 5 project, which suffered delays due to procurement restrictions, non-responsive bidding, and unforeseen geological challenges such as rock formations in the project area. While funds for Phase 4 of the project were fully utilised, Phase 5 remained stalled due to the late approval of procurement processes, which only commenced in mid-December 2023.

The municipality assured residents that steps have been taken to restore public confidence and improve infrastructure spending. These measures include the re-advertisement of the Dibeng Sewer Network Phase 5 tender, the successful appointment of a contractor, and a commitment to completing the project by December 2025. Additionally, the municipality has pledged to enhance oversight and accountability to prevent similar delays in the future.

To ensure full utilisation of the MIG funds in the current financial year, Gamagara Municipality has implemented several corrective measures. These include proactive procurement planning, strengthened engagement with grant administrators, and enhanced monitoring mechanisms to track progress and financial expenditure. The newly appointed director is expected to play a critical role in overseeing these improvements.

Municipal Manager Mr Lebogang Seetile reaffirmed the municipality’s commitment to service delivery and financial accountability, stating that an action plan detailing project prioritisation and implementation strategies would be presented to the MIG task team for approval before submission to the council.

With growing concerns over infrastructure delays and the loss of crucial funding, residents of Gamagara will be closely watching whether these interventions lead to tangible improvements in service delivery. The establishment of the proposed task team and the effectiveness of the new director’s leadership will be key in determining whether the municipality can meet its expenditure targets and avoid another year of underperformance.