Operational framework for municipal infrastructure grant spending in the North-West

Abstract

In South Africa, local governments are allocated municipal infrastructure grants to redress infrastructural imbalances inherited from the past. However, these grants are not fully spent and are returned to the National Treasury. There is a need to determine these trends of underspending. This article looks into this. It is based on the study that the authors undertook, which developed an operational framework that could assist local governments to spend the full allocation during the financial year for the projects that have been assigned and approved by municipalities. The framework uses both quantitative and qualitative data in a mixed method research approach and simple linear regression. Data was collected using questionnaires and documents from the Department of Human Settlements and the National Treasury. These were statistically analysed using both descriptive and linear regression. The framework was put through focus group discussion for refinement. The main findings before the focus group refinement included a lack of project management experience or qualifications, and project team leaders not monitoring and evaluating the projects and managing changes within the project environment. The focus group discussions revealed the need for an independent project management unit and functional intergovernmental relations. These have been identified as the main reasons for underspending. The framework that has been developed and tested through focus group discussions could be used by municipalities, in other provinces, to increase municipal infrastructure grant spending, reduce backlog and accelerate service delivery.