Dbn Chamber's concern about R1bn in unspent grants

THE Durban Chamber of Commerce and Industry NPC has expressed deep concern about the unspent grants earmarked for infrastructure upgrades, amounting to over R1 billion.

- THAMI MAGUBANE

It stated that with eThekwini Municipality’s ongoing service delivery challenges, this represents significant missed opportunities to create a more enabling environment for businesses to thrive.

The Mercury recently reported that there have been concerns from opposition parties and a ratepayers group that close to a billion rand in grants have not been spent.

While the mayor's office expressed general concerns about under-expenditure, it stated that it intends to spend 95% of the grants.

The chamber said Durban's water and sanitation system is under severe strain, with much of its infrastructure, such as pipelines and treatment facilities, ageing and deteriorating.

“The growing water demand continues to place additional pressure on the system. Furthermore, poor management of the City’s stormwater networks is increasing the City’s vulnerability to flooding.

“These challenges have become a serious concern for businesses, many of which are experiencing operational downtime and have been forced to explore alternative options to sustain their operations,” said the chamber in a statement.

It noted that despite these challenges and the urgent need to upgrade deteriorating infrastructure, the capital budget is on a declining trajectory.