The African National Congress (ANC) in the Eastern Cape has urged the Nelson Mandela Bay Metropolitan Municipality not to divert funds meant for infrastructure to other expenses.
ANC Eastern Cape secretary Lulama Ngcukayitobi said on Sunday that the municipality must be warned of the consequences of diverting funds set aside for particular projects to pay for other things.
Ngcukayitobi was responding to reports that the municipality attempted to divert R300 million from a R700 million loan meant for replacing the metro’s aging water infrastructure, to pay legal bills, drop lawsuits, and hold summer season festivities.
“Nelson Mandela metro should be warned not to undertake that particular route; it will be wrong and detrimental for the institution’s image,” Ngcukayitobi noted.
He added that misdirecting funds in this way would hinder the municipality’s drive for an improvement in its audit outcomes.
“Remember the metro was the worse culprit in the last financial audit reports, followed by OR Tambo [municipality],” he said.
Earlier this year National Treasury issued a stern warning to municipalities not to redirect funds in this manner.