Question NW3174 to the Minister of Public Works and Infrastructure
13 December 2023 - NW3174
Singh, Mr N to ask the Minister of Public Works and Infrastructure
(1)What are the full details of the recent and abrupt suspension of the Public Employment Programme that was part of the Presidential Employment Stimulus Programme in the eThekwini Metropolitan Municipality; (2) Whether there are any plans in place to minimise the impact of the suspension to the beneficiaries of the specified programme; if not, why not; if so, what are the relevant details?
Reply:
The Minister of Public Works and Infrastructure:
1. The programme's suspension, which impacted 3,541 participants, was brought about by a decrease in the Presidential Employment Stimulus (PES) grant budget to the City, which was projected to be R298 million in the 2023–2024 financial year, but only R141 million was allocated, as opposed to R387 million in the previous financial year. In terms of the PES grant conditions, salaries should account for 70% of the total amount, with the remaining 30% going towards any other project-related expenses. In 2022–2023 salaries accounted for R311 million of the R387 million allocated. However, in the 2023-24 financial year, a total budget of R141 million of the budget was received for all costs including salaries. Owing to this shortage, the Municipality was forced to choose between cutting programme participants significantly or to continue the programme for three months with 5,394 participants appointed. After careful consideration of all available choices, the city ultimately decided to suspend the current participation when the available funding allocation run out.
2. The EThekwini Municipality, the municipality is currently engaging National Treasury with an application for additional funding of R270 million submitted in September 2023, for consideration during the adjustment budget process. Furthermore, engagements are also being made within EThekwini Municipality to ascertain whether internal departments that include; Cleaning and Solid waste, Water and Sanitation, and Parks, Recreation and Culture can fund the stipends of the participants on projects being implemented from their own budgets.