Question NW3849 to the Minister of Cooperative Governance and Traditional Affairs
17 November 2023 - NW3849
Spies, Ms ERJ to ask the Minister of Cooperative Governance and Traditional Affairs
Whether, with reference to the R56 billion debt municipalities owe Eskom and Treasury’s Municipal Debt Relief plan (details furnished), her department consulted with the National Treasury to commission an independent socio-economic impact assessment on the proposed National Treasury plan to ring-fence municipal grants meant for indigent households for use in the payment of debt by dysfunctional municipalities; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
The question is elicited by the Honoruable Member’s take that there is a “proposed National Treasury plan to ring-fence municipal grants meant for indigent households for use in the payment of debt by dysfunctional municipalities” of which the Department of Cooperative Governance is not privy of. Given that the “plan” is attributed to the National Treasury which also issued MFMA Circular No. 124 (on Municipal Debt Relief), it is therefore recommended that the question be redirected to Ministry of Finance for the National Treasury to provide a response accordingly.
I thank you.