MEDIA STATEMENT SELECT COMMITTEE ON APPROPRIATIONS URGES RESPONSIBLE USE OF MUNICIPAL CONDITIONAL GRANTS Parliament, Tuesday, 20 October 2026 – The Select Committee on Appropriations says a municipality’s performance should be measured not only by the proportion of grant funding spent, but also by timely project completion, functioning infrastructure and measurable improvements in basic services for communities. The Select Committee on Appropriations received a briefing today from the Phokwane Local Municipality on its municipal conditional grant performance for the first and fourth quarters. Phokwane is a category B local municipality within the ZF Mgcawu/Frances Baard region of the Northern Cape. As part of its in-year monitoring of municipal conditional grants, the committee is assessing not only expenditure performance but also whether appropriated resources translate into completed infrastructure, improved service delivery and sustainable municipal capacity. The committee Chairperson, Ms Tidimalo Legwase, said reviewing provincial and municipal conditional grant spending does not supersede their executive functions, nor does it replace oversight by provincial legislatures and municipal councils. She explained that the committee tracks funds allocated through the national budget to assess whether these funds are used as intended and deliver services to communities. Phokwane received a Municipal Infrastructure Grant (MIG) allocation of R23.427 million in 2025/26 but spent only R16.782 million, or approximately 72 per cent. The municipality attributed the underspending to delays in site occupation while the municipality and the contractor discussed the terms and conditions of appointment. The committee acknowledged that Phokwane is experiencing problems with ageing infrastructure, significant backlogs, low revenue collection, substantial debt to Eskom and low revenue collection abilities. However, the committee noted that 72% expenditure on the Municipal Infrastructure Grant is not performance. Furthermore, Parliament will no longer accept reports that claim 100% per project while communities still live with raw sewage, gravel roads and no water. “Section 195 of the Constitution says public resources must be used efficiently, economically and effectively. Spending 72% is not efficient. Building a pump station at 95% for two years is not effective. Claiming 100% progress while Sakhile, a residential area, floods is not accountable. This committee is not here to sympathise with ageing infrastructure – we are here to ensure that every rand appropriated by Parliament delivers a tap that runs, a toilet that flushes and a street that is passable. If Phokwane cannot spend, we will recommend that Treasury gives the money to a municipality that can,” said Ms Legwase. Ms Legwase also noted that section 4(4) of the Money Bills Amendment Procedure and Related Matters Act requires committees to consider and report on spending matters and actual expenditure. She explained that the committee’s in-year monitoring therefore drew on several sources, including reports under section 32 of the Public Finance Management Act and section 71 of the Municipal Finance Management Act, which include information on conditional grant performance. Ms Legwase concluded that the committee is concerned, not just with whether public funds have been spent, but whether that spending has achieved its intended outcomes. She emphasised that public resources must deliver functioning infrastructure, sustainable institutions and tangible improvements in service delivery. ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON APPROPRIATIONS, MS TIDIMALO LEGWASE. @ParliamentofRSA @EconoCluster @HealthSocClust @DefenceCluster @GovernanceClus1 @JustSecuCluster For media enquiries or interviews with the committee Chairperson, please contact: Name: Jabulani Majozi (Mr) Parliamentary Communication Services Cell: 083 358 5224 E-mail: [email protected]

The Standing Committee on Finance is meeting this morning to discuss and adopt the Budget Review and Recommendations Report on the National Treasury and entities within the portfolio. The meeting is streamed live on Parliament YouTube channel under the link below: 👇 youtube.com/live/I2CkCKtYPAE… #CommitteesAtWork >JM @ParliamentofRSA @HealthSocClust @JustSecuCluster @GovernanceClus1 @DefenceCluster @EconoCluster

The Standing Committee on Finance is briefed by the National Treasury and SARS on their response to the submissions received on the draft Taxation Laws Amendment Bill (TLAB), draft Administration Laws Amendment Bill (TALAB) and the draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill). The meeting is streamed live on Parliament YouTube channel on this link: youtube.com/live/vxs8ZmEmX3M… #CommitteesAtWork >JM @ParliamentofRSA @HealthSocClust @JustSecuCluster @DefenceCluster @GovernanceClus1 @EconoCluster

MEDIA ALERT FINANCE COMMITTEE TO HEAR TREASURY AND SARS RESPONSES TO TAX BILL SUBMISSIONS

MEDIA STATEMENT APPROPRIATIONS COMMITTEE QUESTIONS PROPOSED ELECTRICITY TARIFF HIKES AMID HOUSEHOLD FINANCIAL PRESSURES Parliament, Tuesday, 13 October 2026 – The Standing Committee on Appropriations has expressed concern about Eskom’s proposed electricity tariff increases for the coming year, warning that increased electricity costs could deepen the financial pressures experienced by households amid rising inflation, persistently high living costs and a stagnant economy. Eskom briefed the committee on its proposed electricity tariff increases of 8.83% for customers supplied directly by Eskom and 8.84% for municipalities purchasing electricity from Eskom, effective from 1 April 2027, subject to the approval of the National Energy Regulator of South Africa (NERSA). Eskom also briefed the committee on reforms aimed at supporting indigent households and addressing municipal debt owed to Eskom, reporting that municipal debt stood at R122.5 billion as of August 2026. According to Eskom, defaulting metros have entered into payment arrangements that will take several years to implement, with their success dependent on continued payments and compliance. Committee members questioned the proposed tariff increases, arguing that they were inconsistent with government’s commitment to combating poverty and unemployment. Members also raised concerns that higher interest rates and rising prices are exacerbating the affordability crisis faced by households and communities across the country. The Chairperson of the committee, Dr Mmusi Maimane, called for a closer examination of NERSA’s role in determining electricity tariffs and Eskom’s submissions requesting tariff increases. Dr Maimane said that while the relevant committee can address operational matters, the Standing Committee on Appropriations has a responsibility to scrutinise appropriated funds and ensure their effective and accountable use. Dr Maimane supported the proposal to pay the indigent electricity subsidy directly to Eskom, saying that this would reduce administrative costs and strengthen the utility’s revenue collection and financial planning. “Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity. We therefore need decisions that balance financial sustainability with households’ ability to pay,” said Dr Maimane. Dr Maimane also commended Eskom’s leadership for addressing load shedding and improving electricity stability, noting that the utility’s achievements in reducing load shedding deserve recognition. ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, DR MMUSI MAIMANE. @ParliamentofRSA @EconoCluster @HealthSocClust @DefenceCluster @GovernanceClus1 @JustSecuCluster For media enquiries or interviews with the committee Chairperson, please contact: Name: Jabulani Majozi (Mr) Parliamentary Communication Services Cell: 083 358 5224 E-mail: [email protected]