Co-operative Governance and Traditional Affairs (CoGTA) Minister Velenkosini Hlabisa has raised serious concerns over the misuse of disaster relief funds by municipalities, warning that those failing to account for previous allocations will face consequences.
Speaking at a briefing, Hlabisa revealed that while the estimated cost for damages from June’s disasters stands at R6.3 billion, the government will only disburse R1.2 billion between July and August. The Eastern Cape was the hardest hit, with 103 fatalities, followed by KwaZulu-Natal (3) and the Western Cape (1).
Strict Accountability Measures
Hlabisa emphasized that municipalities which misused past funds—diverting them to salaries and operational costs instead of disaster recovery—will not receive further allocations. Instead, the government will appoint service providers to deliver essential services directly to affected communities.
“When a municipality is unable to account, we will not release the following tranche,” Hlabisa stated. “But we understand that withholding funds affects communities. That’s why we are engaging premiers, MECs, and mayors to ensure compliance.”
He warned local leaders against resistance, stressing that future disbursements are conditional on proper financial reporting. “If you do not meet the accountability condition, we won’t release money,” he said.
Crackdown on Financial Mismanagement
The minister highlighted widespread mismanagement, with many struggling municipalities using disaster funds to cover salaries and daily operations instead of their intended purpose.
“Most municipalities, when allocated money for disaster, don’t use it on disaster. They pay salaries, they run daily operations with that money—and it’s a number of them,” Hlabisa said.
With 257 municipalities in South Africa, he avoided naming specific offenders but assured the public that oversight would be intensified. “There are municipalities even now who are struggling to pay salaries, and we will be observing them very closely.”
Preventing Price Inflation
Hlabisa also announced stringent verification processes to prevent inflated pricing in disaster-related procurements, ensuring funds are used efficiently.
The minister’s tough stance comes amid growing frustration over systemic corruption and financial mismanagement in local governments, leaving vulnerable communities without critical support during crises.
As the July and August allocations are processed, all eyes will be on whether municipalities comply—or face the consequences.