04/09/2026
ARISE AFRIKA ARISE
ARISE AFRIKA ARISE
ARISE AFRIKA ARISE
Municipal Operations Life Orientation Snippets
Date : 03/08/2026
WHY LOCAL MUNICIPALITIES STRUGGLE WITH SERVICE DELIVERY AMIDST SO MANY GRANT OPPORTUNITIES AND CO-OPERATIVE GOVERNANCE BETWEEN PROVINCIAL AND NATIONAL GOVERNMENT
1. INTRODUCTION
Local government is a constitutionally protected sphere, not a department of provincial government. Per Section 40(1), 151(1) and 152(1)(b) of the Constitution, 1996, municipalities must provide services sustainably, and per Section 152(2) within financial and administrative capacity.
To enable this, Section 214(1) and 227(1) guarantee an equitable share and conditional allocations via the annual Division of Revenue Act (DORA)
Yet the fiscal transfer is not translating into taps, toilets and tar.
AGSA 2023/24: Only 34 of 257 municipalities got clean audits, R5.1bn of MIG/WSIG unspent, 66 municipalities spent less 50% of capital grants.
The failure is not absence of money, it is collapse of lawful administration and co-operative governance under Chapter 3 of the Constitution.
1. THE GRANT ECOSYSTEM: LEGAL DEFINITION AND PURPOSE
All grants originate from Section 214 of Constitution read with Intergovernmental Fiscal Relations Act 97 of 1997 and annual DORA.
A. UNCONDITIONAL: LOCAL GOVERNMENT EQUITABLE SHARE (LGES)
Legal Basis: DORA Schedule 2, Constitution Section 227(2).
Nature: Unconditional but earmarked by policy for free basic services.
Purpose: Subsidises indigent package — 6kl water, 50kWh electricity, basic sanitation, refuse — as required by Municipal Systems Act 32 of 2000 Section 74 and Municipal Indigent Policy Framework
Legal note: LGES is not a blank cheque.
Spending must comply with MFMA Section 15 and must be in approved budget. Using LGES to pay Eskom while failing to provide free basic services violates Section 152 and Section 27(1)(b) right to water
B. CONDITIONAL GRANTS: SCHEDULE 5B (DIRECT) AND 6B (INDIRECT)
1. Municipal Infrastructure Grant (MIG)
Authority: DORA Schedule 5B, CoGTA, MIG Policy 2004.
Purpose: Eradicate basic residential infrastructure backlogs for the poor.
Allocation formula based on poverty and backlogs.
Conditions (DORA Sec 16 + MIG Framework): Must be in IDP per Systems Act Sec 25-26 PMU established, feasibility approved on MIG-MIS, 5% only for PMU, no operating spend per MFMA Sec 19.
Project monitoring by CoGTA + province per DORA Sec 12
1. Integrated Urban Development Grant (IUDG)
Authority: DORA Schedule 5B, for 8 intermediate cities: uMhlathuze, Mogale City, Polokwane, Steve Tshwete, Sol Plaatje, Drakenstein, Stellenbosch, Ray Nkonyeni.
Purpose: Public investment for the poor PLUS leveraging municipal own finance.
Performance-based: 70% basic + 30% performance incentive.
1. Regional Bulk Infrastructure Grant (RBIG)
Authority: DORA Schedule 5B and 6B, DWS, Water Services Act 108 of 1997 Sec 3 — national is custodian of bulk resources.
Purpose: Fund social component of regional bulk water/sanitation — dams, reservoirs, bulk pipelines.
Critical Legal Provision: DORA Sec 26 allows conversion from 5B to 6B if municipality fails — DWS implements on behalf of municipality.
This is the lawful remedy for collapsed capacity.
1. Water Services Infrastructure Grant (WSIG)
Authority: DORA Schedule 5B/6B, DWS.
Purpose: Small schemes, refurbishment, drought relief. Directly linked to Section 27(1)(b) Constitutional right and Water Services Act Sec 11 — WSA duty
1. Other Grants:
- INEP (Integrated National Electrification Programme): DMRE, Electricity Regulation Act 4 of 2006 — household connections.
- USDG (Urban Settlements Development Grant): Metros only, Housing Act 107 of 1997— serviced stands, informal settlement upgrading.
- ISUPG (Informal Settlements Upgrading Partnership Grant): National Human Settlements — in-situ upgrading.
- PTNG (Public Transport Network Grant): National Land Transport Act 5 of 2009 — BRT, IPTN.
- NDPG (Neighbourhood Development Partnership Grant): Township hubs.
- EPWP Integrated Grant:* Ministerial Determination on EPWP — labour-intensive jobs.
- EEDSM: Energy efficiency.
- Municipal Disaster Recovery Grant: Disaster Management Act 57 of 2002 Sec 27
1. HOW MUNICIPALITIES LEGALLY ACCESS GRANTS — THE CHAIN
No IDP = No Grant. Per Systems Act Sec 25(1) and MFMA Sec 21
Step 1 — Planning: IDP, Water Services Development Plan (WSDP) per Water Services Act Sec 13 . 3-year capital budget.
Step 2 — Registration: Project on MIG-MIS with EIA per NEMA 107 of 1998 , feasibility.
Step 3 — Procurement: SCM per MFMA Sec 110-119 and SCM Regulations 2005 plus PPPFA 5 of 2000
Step 4 — Transfer: Per DORA payment schedule. First 25% must be spent before second tranche — DORA Sec 16(2)
Step 5 — Reporting: MFMA Sec 71 monthly within 10 working days, DORA Sec 12(5) quarterly performance, AGSA audit.
Non-compliance triggers Section 17-19 of DORA — withholding, stopping, reallocation after 30 days notice per PAJA Act 3 of 2000 Sec 3 procedural fairness.
Four municipalities in 2024/25 (Thembelihle, Siyathemba, Kheis, Tsantsabane) were placed on cost-reimbursement because they diverted grants — a remedy under DORA Sec 20
1. WHY FAILURE PERSISTS — A JURIDICAL DIAGNOSIS
a) Collapse of Technical Capacity — Breach of Sec 56 Systems Act
PMU should be led by Pr Eng per Engineering Profession Act 46 of 2000
Instead municipalities appoint unqualified officials. This violates MFMA Sec 62(1)(a) — Accounting Officer must manage affairs effectively and efficiently. Result: Designs fail, projects abandoned, litigation.
b) Illegal Virement of Conditional Grants — Breach of MFMA Sec 15 and 173
Using MIG for salaries is irregular and criminal.
Per MFMA Sec 1 definition of irregular expenditure and Sec 173 — wilful misuse is financial misconduct.
c) Procurement Paralysis and State Capture
Bid Committees ignore SCM Reg 27-29. Appeals under MFMA Sec 62 take 6 months.
Financial year ends, grant returned to National Revenue Fund per DORA Sec 21. AGSA: R1.8bn returned in 2023/24 unspent.
d) The Implementing Agent Trap and Failure of Cooperative Governance
This is the core legal defect.
Cooperative Governance Framework:
- Constitution Sec 41(1)(b),(c),(h): Spheres must not encroach, must cooperate, assist, support.
- IGRFA 13 of 2005 Sec 5-35: Establishes Intergovernmental Forums.
Sec 35 — no unfunded mandates.
- Constitution Sec 154(1): National and provincial must support municipalities.
Reality:
- Water: National (DWS) owns bulk per Water Services Act Sec 3: Municipality is Water Services Authority per Sec 11 : If RBIG bulk pipeline fails, municipality cannot reticulate, but community protests against municipality, not DWS. This violates Sec 41(1)(h)
- Housing: Province builds houses per Housing Act Sec 3(4)(a) : Municipality provides land and services via USDG.
When province fails to deliver top structure, municipality sits with serviced stands and accusations.
- Roads and Clinics: SANRAL owns N-roads, Province owns P-roads and clinics per Schedules 4 and 5 of Constitution : Municipality must provide access roads and water to clinic.
If municipality has no MIG, clinic cannot function.
This is unfunded mandate prohibited by IGRFA Sec 35 and MFMA Sec 35 — national cannot impose function without funding.
1. THE WAY FORWARD — LEGALLY ENFORCEABLE SOLUTIONS
2. Enforce Professionalisation: MEC concurrence under Systems Act Sec 56(6) must require ECSA registration.
Personal liability for MEC who concurs with unqualified appointment — extension of Oudekraal principle
3. Ring-Fencing and Criminalisation: Enforce MFMA Sec 8(4) — separate bank account per grant. Invoke MFMA Sec 173-174 — make diversion an offence with mandatory Sec 139 intervention.
4. Mandatory Schedule 6B Conversion: Where AGSA disclaims or 2 years underspending >40%, National Treasury must invoke DORA , Sec 26 and Systems Act Sec 78 — appoint MISA or DWS as implementing agent. Law already provides remedy.
5. Enforce DIMAFO: IGRFA Sec 24-26 District Intergovernmental Forum chaired by District Mayor with Premier present must sit quarterly. Non-attendance must trigger Sec 47 IGRFA dispute
6. Merit Over Billboards — Small Infrastructure Doctrine: Amend MIG Framework to allow R500k-R5m community check dams, solar boreholes, rainwater harvesting under Systems Act Sec 76(b)(ii) — community-based delivery. Build 1000 boreholes, not 1 billboard.
This is the AAAIC model: Agrarian, Agro-processing, Industrialisation, Cultural.
1. CONCLUSION
The Constitution gave us money, laws and cooperative governance.
What it cannot give us is political will.
Until appointment complies with Systems Act Sec 56, expenditure complies with MFMA Sec 62 and co-operation complies with Constitution Sec 41, DORA will continue to publish billions while our people share water with animals.
The solution is not more grants. It is lawful administration of existing grants.
Ben Mothupi: President
(BCom Law & LLB)
ARISE AFRIKA ARISE INDEPENDENT CONGRESS (AAAIC)
Contact : 0732071171 (WhatsApp)
゚
