Poor administration at the center of Msunduzi’s IRPTN Project failure

Issued by Cllr. Sibongiseni Majola – DA UMsunduzi Caucus Leader
07 Sep 2020 in Press Statements

The Democratic Alliance (DA) in uMsunduzi municipality is deeply concerned about the city’s Integrated Public Transport Network project (IRPTN) which has shown no progress due to poor administration

 

The project which was initiated 12 years ago and has cost close to R1 billion is only 30% complete.

 

With the city being one of the country’s economic hubs, in 2008 Msunduzi along with 12 other cities were awarded financial government grants in order to institute an IRPTN on the main transport routes within their city boundaries.

 

From the beginning, this project was doomed for failure. By the end of the financial year 2010/11, Msunduzi had received an approved IRPTN budget of R25 million, but they only managed to spend R8 million. The National Treasury resolved to put on hold the annual allocation to Msunduzi due to poor performance and the fact that Msunduzi sent back money every year unspent.

 

The failure by the municipal council to exercise the oversight on management, with particular reference to the management of conditional grants, resulted in under-expenditure and caused the funding to be stopped by National Treasury

 

In 2019/20 Msunduzi managed to spend 60% of their allocated budget and was forced to apply for R94 million rollover. Should the rollover be approved, the municipality will still have a shortfall of R140 million due to the fact that Msunduzi has over-committed itself on non-funded IRPTN projects. In the past 11 years, Msunduzi has underspent by almost 50%.

 

It is disappointing to know that because of poor management a project which stood to turn around the financial situation in the municipality through bringing in more business, has now turned into another waste of taxpayers money.

 

The ANC- led administration has shown little to no will to complete this project and until we can get leadership which is rooted in improving service delivery, things are only going to get worse for this municipality.