National Treasury agree with Dr Tracy Ledger’s findings about Municipalities diverting funding everywhere else except to free basic electricity since 2014.
“In our analysis of the past six audit periods, we confirm Dr Tracy Ledger’s observation that municipalities divert funds for free basic services (including FBE) to other initiatives and operational costs within their municipalities during these audit periods.”
So who is meant to ensure free basic electricity reaches intended recipients?
” Because the LGES is an unconditional transfer, its use within municipal budgets is discretionary and governed by municipal councils. By regularly auditing their indigent registers, they can ensure full coverage of the indigent.” Municipalities cannot be told how to spend their allocated resources by the National Treasury as an oversight institution. However, they can be encouraged to prioritise basic services for poor households. This is done through the annual budget processes and various engagements with the municipalities.
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