(See
How others allocate their GiA funds.)
A municipal councillor who spoke to amaBhungane on condition of anonymity raised concerns that non-profits were obliged to compete with profit-making companies. It doesn t make sense how a commercial event with corporate, media, and alcohol sponsors is evaluated and funded through the Grant-in-Aid programme. Priority should be given to projects that will have a sustainable impact and are community development centric.
The councillor conceded that commercial events were good exposure for the municipality and boosted the local economy. But he questioned the rationale of approving commercial events using the GiA policy rather than a separate policy meant for such occasions.
Under Ekurhuleni mayor Mzwandile Masina, allocations to fund community and poverty alleviation projects ballooned from R20-million to R100-million in 2017 – but the process of selecting and monitoring beneficiaries was opaque, posing the risk that a laudable programme was diverted to buy favour and influence.
Municipalities are empowered to make charitable grants – “grants-in-aid” (GiA) – in terms of section 67 of the Municipal Finance Management Act.
But critics, including some members of the mayor’s own party, the ANC, say the process poses risks that projects may be handed to political favourites, have little to do with helping the poor and that few measures are taken to ensure that projects actually meet requirements.