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Causes of unspent municipal infrastructure grant in the Capricorn District Municipality : case of two selected local municipalitiesMaake, Khomotso Rahab January 2017 (has links)
Thesis (MPA.) -- University of Limpopo, 2017 / In 1994 the South African democratically elected government inherited one of the most
inequitable access to basic service between rural and urban communities. Rural people
used to live without access to basic services such as water, electricity, roads and
sanitation facilities. South African government established the Municipal Infrastructure
Investment Framework as the national Strategic Plan to outline the extent of basic
infrastructure backlogs and to come up with strategies to improve basic service
provision to the poor citizens. The Municipal Infrastructure Grant (MIG) is a municipal
infrastructure funding which combines all the existing capital grants for municipal
infrastructure into a single consolidated grant. MIG is aimed at assisting the poor to gain
access to infrastructure. MIG funding can only be used for infrastructure for basic
services. Polokwane local municipality and Blouberg local municipality are the
beneficiaries of MIG.
The purpose of the study was to investigate the causes of unspent Municipal
Infrastructure Grants in Polokwane and Blouberg local municipalities. An extensive
literature review has been undertaken to gather information regarding unspent
Municipal Infrastructure Grants in the two municipalities in the Capricorn District;
Polokwane and Blouberg local municipalities. The study provides an investigation on
how Polokwane and Blouberg local municipalities monitor the Municipal Infrastructure
funding. The study further investigate the capacity of the municipalities to implement
MIG, and whether these municipalities have the capacity to effectively utilise the MIG
for efficient and effective service delivery. The researcher utilised a qualitative approach
to collect data through interview schedule. A satisfactory response rate of 98% was
obtained. The results indicated that Polokwane and Blouberg local municipalities are capacitated to implement and to monitor MIG. However, the municipalities often spend less than the budgeted MIG, as a result progress in the access to basic services is hindered. The failure to adequately spend the MIG by these municipalities is due to the fact that there is poor planning and a lot of political interference in the Supply Chain Management processes.
The study recommended that managers should do proper planning beforehand, avoid
late appointment of service providers and make references on the service providers
they appoint to avoid disputes from members of the community. The study further
recommended that Polokwane and Blouberg local municipalities should do proper
consultation of the project, budget accordingly, and appoint companies that will produce
positive end results with value for money. The study recommended that political office
bearers should not interfere in the supply chain management processes.
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