Treasury threatens to withhold R629m in development grants from City of Tshwane over non-performance & non-compliance
Due to the cash-strapped metro’s non-performance and non-compliance, National Treasury is threatening to withhold R629 million in conditional grants meant to develop it.
Jacaranda trees in the City of Tshwane. Picture: South African Tourism/Flickr
TSHWANE - The City of Tshwane stands to lose more than R600 million in development allocation grants due to non-performance and non-compliance.
A day after Tshwane Mayor Cilliers Brink vowed to get the metro out of its deepening financial crisis, National Treasury informed the city of its intention to cut the payout of conditional grants.
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National Treasury is threatening to withhold R629 million in grants meant to develop the cash-strapped City of Tshwane.
The drastic move by Treasury, which will be devastating for the metro’s financial recovery efforts, is expected to affect at least five grants, including project preparation support and urban settlement development.
The decision will also affect the upgrading of informal settlements, public transport, and neighbourhood development.
The city has been plagued by poor service delivery issues and crumbling infrastructure, which has crippled the capital over the years.
The decision to withdraw millions in development grants threatens to worsen these challenges, potentially pushing the metro to the brink of collapse.