CALLS have been made for the eThekwini Municipality to come clean about its “reckless” handling of a national government funded employment programme aimed at assisting the poor affected by the Covid-19 pandemic.
The municipality announced on October 11 that it had terminated its Public Employment Programme (PEP) because of budgetary constraints.
This meant thousands of the city's PEP workers were forced out of jobs created through the “Presidential Stimulus Package”, aimed at poverty alleviation.
The PEP came into effect in May 2021 and was due to end in June next year. Media reports on August 20 carried the City’s confirmation that it secured funding for 2023/24.
Those selected for the PEP were deployed in various City departments as general workers and were paid below R4000 a month.
An extract from the municipality’s press statement confirming their PEP termination read: “ ... with the PEP in its third and final year of implementation, the budget for 2023/24 financial year was revised by National Treasury from the originally gazetted R263 million to R141 million.
“This significantly affected the municipality’s ability to retain the majority of beneficiaries.
“This is indeed a very disappointing development that is beyond the municipality’s control.”
In its response to the Sunday Tribune’s questions, the Treasury’s media team indicated there was no sudden reduction of funding for the programme and municipalities were aware of the allocated amount in the last financial year.
“Changes are only made during the adjustment period based on performance.”
The Treasury indicated that for 2022/23, eThekwini had a budget approval of R150m based on its supporting business plan.
“The initial gazette for the same financial year amounted to R263 362 000. However, this figure was revised downward after a thorough review of the municipality's business plan and considering substantial unspent funds from the preceding fiscal year (2021/22).”
During 2021/22, the eThekwini Metro utilised only R56.3m of the allocated budget, leading to an approved rollover of unutilised funds amounting to R237 039 000, which significantly bolstered the municipality's spending capacity in 2022/23.
“In the current financial year, after its business plan was evaluated, eThekwini had R140.7m approved on August 8 and its request for additional funding was turned down.”
In July R70.5m was transferred to the municipality and the balance will be deposited on Tuesday.
“The municipality was requested to furnish cash flow projections for 2023/24 in April this year.
“Regrettably, the municipality officially reported a budgetary challenge on October 2. The municipality should not have committed to spend more than its grant allocation if it had no plan to add from its own budget,” the Treasury said.
The Sunday Tribune’s list of questions to the municipality included: was it satisfied with the handling of the PEP, and who was to blame for the PEP not going the distance.
Also, why did the municipality only announce its decision to terminate the PEP two months after the Treasury had approved R140.7m for the current financial term, and why did it announce the programme would be migrated to 12 NGOs, also in August, when it was already clear the City did not have additional funding?
The municipality was also asked about oversubscribing the PEP.
The municipality did not answer the Sunday Tribune’s questions but stood by its October 11 press release, which also indicated that more than 3500 of the City’s 6000 PEP workers would be affected and it was looking at alternatives to minimise the impact on the affected beneficiaries.
Some of the affected beneficiaries confirmed to the Sunday Tribune that they received SMSes from the City’s PEP team on Friday, calling them back to work at the end of the month.
The City did not issue an official comment on the development.
Sifiso Mthethwa, a father of four, living at the Lacey Road squatter camp in the Sydenham area, said he received an SMS asking him to resume PEP duties at the end of the month.
He was doing cleaning duties for six months at the Moses Mabhida Stadium when he was informed that the programme was being terminated. Mthethwa was previously doing street cleaning duties for a year on the PEP.
“The money I earned was small, but I‘m the only person working in my family. It helps me put food on the table,” he said.
Lihle Madondo, another PEP worker, from Chatsworth, confirmed she also received an SMS to return to work. Madondo was with the disaster management unit before being moved to the parks department.
“The announcement ending the PEP was a big blow for me and my family,” she said.
Opposition political parties accused the ANC-controlled municipality of mismanaging and oversubscribing the PEP to appease branch members.
Thabani Mthethwa, DA’s eThekwini caucus leader, said the municipality’s handling of the PEP was “reckless”.
“The last thing we need is poor people falling victim to clumsy and reckless decision making.
“They must take responsibility for on-boarding more people than necessary,” Mthethwa said.
Zwakele Mncwango, ActionSA’s leader in KZN, said the municipality had finances for other ventures but not for a programme aimed at fighting poverty.
“The municipality claims it does not have the funds for the PEP, yet at a recent council meeting their leadership wrote off more than R700m associated with its Revenue Management System.
“It is also concerning that they are also committing to spend R25m to the organiser of a one-day summer event.”
Mncwango identified other ventures the municipality committed to pour money into instead of the PEP.
He said there were voice notes circulating about PEP jobs being reserved for people aligned to the ruling party.
“We are calling for investigations,” said Mncwango.
Mdu Nkosi, the IFP’s leader in eThekwini, agreed that a thorough investigation was needed.
“When the municipality confirmed it got funding, it raised the hopes of thousands of people, now they are confused and disappointed.
“The truth must be told on this matter.”
SUNDAY TRIBUNE