National Treasury denies 84% of disaster funding necessary for W. Cape flood damages

The Western Cape government, hit severe flooding in the 2023 rainy season which caused an estimated damages of R1 billion, has argued that the disaster management efforts are severely underfunded.

The provincial government applied for R700 million in disaster relief, but only R114 million (16% of the requested amount) has been released by the National Government. This reduced budget does not reflect the extent of the damages, and is a major reduction in funding from the previous year – in 2022, Treasury awarded the Western Cape almost R290 million for damages caused by heavy rains and floods in the previous year.

Provincial governments in South Africa do not have the capacity to raise their own taxes, except for a few marginal tariffs which comprise 3% of the budget. For the rest, they rely on grants from the National Treasury, which must approve their budgetary demands on a rolling three-year basis.

The DA-run Western Cape Government has identified 70 projects in various municipalities to utilize the received funding, including 24 Projects in Theewaterskloof, 16 Projects in Overstrand, 11 projects in Stellenbosch, 13 projects in Langeberg, and 6 Projects in the City of Cape Town.

The shortfall is attributed to fiscal mismanagement and corruption by the ANC, who have imposed severe financial restrictions on the provincial sphere as they fail to reign in the national budget for tenders and wages. MPP Isaac Sileku criticizes ANC for not allocating sufficient disaster funding and emphasizes the Western Cape Government’s track record of financial management:

“The Democratic Alliance in the Western Cape firmly believes that the Provincial Government should have been given more disaster funding, given the extent of the disaster. The money would have been well spent, as the Western Cape Government has a track record of firm financial management. Disaster funding should be in place for events of this nature, and it is unacceptable that the ANC squandered this money. Provincial Governments should not be expected to carry these costs on their own, but this is what is happening under the disaster that is the ANC National Government.”

The R114 million will be used for the 70 aforementioned projects, addressing the damage caused by flooding in September across different municipalities.

Disaster declarations were submitted for both May/June and September floods, but funds have only been allocated for the latter.

Anton Bredell, Local Government MEC, appreciates the present allocation but stresses the need for a new mindset in infrastructure development to anticipate extreme weather events.

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