Infrastructure
- How much has been cut or reduced from the (a) Human Settlements Development Grant (HSDG) and (b) Informal Settlements Upgrading Partnership Grant (ISUPG) in the last two financial years;
- whether a formal intergovernmental dispute has been lodged with reference to the recent R300 million cut to the HSDG and the ISUPG; if so, what is the nature of the dispute;
- whether the dispute has been resolved; if so, how?
- (a)(b)
2023/2024 HSDG Allocated : R1,701,511,000
Funding cut November 2023 : R214,306,000
Funding cut February 2024 : R250,000,000
2023/2024 ISUPG Allocated : R448,809,000
Funding cut October 2023 : R57,189,000
2024/2025 HSDG Allocated : R1,605,872,000
Funding cut February 2025 : R200,000,000
2024/2025 ISUPG Allocated : R382,315,000
Funding cut February 2025 : R100,000,000
- A formal intergovernmental dispute has been lodged with reference to the recent R300 million cut to the HSDG and the ISUPG. My Department does not accept and places in dispute the reduction of its human settlements Grants allocation effected by the NT Gazette number 52207 dated 03 March 2025. The fact that the National Department of Human Settlements agreed to the Adjusted Business Plans presented by my Department, which contemplated expenditure of the entire allocated grant funding prior to the reduction, leads to the conclusion that the decision to nevertheless request and implement a grant allocation reduction was grossly irrational. It is further my Department’s contention that proper process was not followed in the decision- making process to reduce the instant grant allocation.
In addition, the methodology used by the National Department of Human Settlements to evaluate performance on delivery and budget spend does not account for the realities of the delivery of housing opportunities. The evaluation methodology relied on Q1 (July to September 2024) performance data from the municipalities and Q2 (April to September 2024) performance data from the provinces. Since the delivery of housing opportunities are construction projects and the delivery is measured on completed units and sites, it is not feasible to expect that significant spending will be reflected at the beginning of a municipal financial year, when at best construction has only commenced following necessary planning and procurement processes. Using this methodology therefore leads to inaccurate forecasting by the NDoHS on the projected meeting of targets and budget spend and the inevitable irrational and consequently unlawful stoppage of allocated funding.
- The dispute has not been resolved.
