The North West Provincial Treasury, together with national partners, has intensified support to municipalities to improve the management, expenditure and reporting of conditional infrastructure grants, provincial officials said.
Co‑ordinated push to reduce unspent grants
The Treasury, National Treasury, the Department of Cooperative Governance and Traditional Affairs (CoGTA) and the National and Provincial Disaster Management Centres convened a Municipal Unspent Infrastructure Grant Roll‑Over engagement session to guide municipalities on the requirements for submitting rollover applications.
The session was held in line with Municipal Finance Management Act (MFMA) Circular No. 134, which sets out the rules, deadlines and documentation needed for requests to roll over unspent conditional grants under Section 21(2) of the 2025 Division of Revenue Act (DoRA). Officials emphasised compliance with the circular as a condition for approval by National Treasury.
Focus on MIG and disaster recovery funding
Participants concentrated on the Municipal Infrastructure Grant (MIG) and the Municipal Disaster Recovery Grant, stressing the need for sound planning, efficient expenditure and accurate reporting so that public money translates into visible infrastructure and services.
Provincial Treasury Head of Department, Ndlela Kunene, described effective grant management as central both to municipal financial performance and to delivering services to communities.
“These pressures reinforce the importance of sound financial management, credible planning and effective coordination among municipalities and the provincial and national institutions responsible for supporting local government,” Kunene said.
Kunene also noted the context in which the engagement takes place: municipalities face withholdings from the equitable share while the demand for municipal responses to natural disasters grows. That combination, he said, increases the need for credible plans and co‑ordination to protect infrastructure and communities.
Ten municipalities have applied for roll‑overs
The provincial treasury confirmed that rollover applications had been received from 10 municipalities in the province. These applications will be assessed by National Treasury in line with the criteria set out in the MFMA circular.
| Grant | Primary focus at engagement |
|---|---|
| Municipal Infrastructure Grant (MIG) | Planning, efficient expenditure, accurate reporting |
| Municipal Disaster Recovery Grant | Disaster response planning and infrastructure rehabilitation |
What this means for communities and councils
For residents, clearer grant management should mean fewer stalled projects and a greater likelihood that budgets intended for roads, water, sanitation and disaster recovery will be spent on the ground. For municipal officials, the session provided practical guidance on preparing documentation and demonstrating why funds were unspent and should be rolled over.
- Municipal officials must show that rollover requests arise from unforeseen and unavoidable circumstances, as required by the circular.
- National Treasury will assess applications against MFMA Circular No. 134 and the DoRA provisions.
- Co‑ordination between provincial and national disaster centres, CoGTA and treasury teams is expected to strengthen oversight of disaster recovery spending.
The engagement signals continued scrutiny of municipal finance in the province, where constrained local budgets and increasing disaster risks place pressure on delivery. The provincial Treasury’s emphasis on planning and accurate reporting aims to reduce future roll‑over requests and improve the pace at which allocated infrastructure funds reach communities.
National Treasury will now consider the roll‑over applications from the 10 municipalities. Approval or rejection will depend on whether the required evidence and documentation comply with the MFMA circular and DoRA provisions.
