Ten North West municipalities have asked the National Treasury for permission to carry unspent infrastructure grants into the new financial year, despite the province previously saying it was pushing towards full expenditure of its R2.19-billion Municipal Infrastructure Grant (MIG) allocation.
The applications cover unspent conditional funding from the 2025/26 municipal financial year and are now being assessed by National Treasury. Provincial Treasury head Ndlela Kunene confirmed that applications had been received from 10 municipalities.
The applications bring the spotlight back onto infrastructure spending in a province battling persistent water, sanitation and road problems.
National Treasury’s MFMA Circular 134 makes the hurdle clear. Unspent conditional grants ordinarily revert to the National Revenue Fund unless the Treasury approves a rollover.
Municipalities had until August 31 to submit complete applications proving that the money was committed to identifiable projects. The Treasury says incomplete or late requests will not be considered, and municipalities should be told by October 23 whether they can retain the money.
The circular requires municipalities seeking rollovers to demonstrate commitments to projects rather than simply retaining unused cash.
Kunene said National Treasury would assess the 10 applications under Circular 134, with provincial Treasury saying requests had to arise from “unforeseen and unavoidable circumstances” to qualify.
“These pressures reinforce the importance of sound financial management, credible planning and effective coordination,” Kunene said of the broader financial pressures facing municipalities.
The applications come only months after North West reported that municipalities had spent R1.3-billion, or 64%, of the province’s R2.19-billion MIG allocation by the end of March.
At the time, MEC Gaoage Oageng Molapisi said the province wanted to drive expenditure towards 100% and warned of reallocations where municipalities performed poorly.
The latest rollover applications have now drawn fire from the EFF in the North West, which questioned how municipalities could leave infrastructure money unused while communities struggled with water and sanitation failures.
The party said: “Failing to repair municipal infrastructure that has been damaged by natural disasters is blamed on lack of funds; meanwhile, these conditional grants are simply not being spent,” the EFF said.
- Ten North West municipalities have applied to National Treasury to carry unspent infrastructure grants from the 2025/26 financial year into the new year.
- The total Municipal Infrastructure Grant (MIG) allocation for the province is R2.19 billion, with only 64% spent by the end of March 2025/26.
- Applications must prove that the unspent money is committed to identifiable projects and arise from unforeseen and unavoidable circumstances, as per National Treasury’s MFMA Circular 134.
- Municipalities had until August 31 to submit complete rollover requests, and National Treasury plans to communicate approvals or rejections by October 23.
- The EFF in North West criticized municipalities for leaving infrastructure funds unspent despite ongoing community issues with water and sanitation.
