National Treasury called to account for R9 billion misused free basic electricity funding
The money was set aside and given to municipalities to roll out free basic electricity to indigent households in the 2019/20 financial year.on electricity access for low-income households, revealing that basket case municipalities “spent the money on other things”.
He said it was the job of both Mboweni and National Treasury, in terms of the Municipal Finance Management Act, to: She reveals discrepancies between the number of households being funded for free basic electricity and the number actually receiving the benefit. However, according to the report, “this is an insufficient amount of energy required by a household per month”.
Further revelations made by the report are how between 2014 and 2019 about R38 billion allocated by National Treasury for free basic electricity failed to reach the intended recipients and was instead used by municipalities for other purposes. “Instead, most municipalities have put in place a very complex – and likely expensive – process which many households experience great difficulties with. Many qualifying households are not even aware that they might benefit from the free services, suggesting that many municipalities are not making much effort in this regard,” the report reads.
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