Minister Velenkosini Hlabisa allocates disaster response and recovery grants

Programme Director

Ladies and Gentlemen of the media

Fellow South Africans

Good Day

I would like to begin by expressing my gratitude for your presence at this important briefing.

As we face the growing challenges posed by natural hazards such as floods, heatwaves, veld fires, and droughts, it is crucial to recognise the substantial threats these events pose to our communities, infrastructure, and economy. While climate change has exacerbated some of these risks, we also confront challenges stemming from unsustainable practices and inadequate planning. Acknowledging these factors allows us to pursue proactive measures and solutions that can lessen future risks.

Recently, our country has experienced significant weather events, with various provinces suffering heavy rains, floods, thunderstorms, and strong winds since the beginning of 2025. These occurrences highlight the urgent need for collaborative action and resilience-building within our communities. On behalf of the government and the people of South Africa, we offer our condolences to the families and loved ones, and we commit to continuing our efforts to build resilience and reduce the risk of future disasters so that no more lives are needlessly lost.

Though we grieve the loss of 40 lives and the damage inflicted on infrastructure, homes, and livelihoods in KwaZulu-Natal, Eastern Cape, Limpopo, Free State, Mpumalanga, North West, and Gauteng, we must turn our attention to recovery and improving our preparedness for future challenges.

By learning from these experiences, we can develop stronger systems and strategies that will safeguard our citizens and enhance our collective resilience as we move forward.

After a thorough assessment and discussions with provincial disaster management centres, I can confirm that the National Disaster Management Centre (NDMC) has officially designated and classified these events as a National Disaster under the Disaster Management Act.

The following are the main key implications of the Classification:

• The National Executive assumes primary responsibility for coordinating and managing the disaster in accordance with existing legislation and contingency arrangements.
• All organs of state are called upon to strengthen support measures and implement contingency arrangements to mitigate the impact of the disaster.
• A multisectoral relief and rehabilitation plan will be implemented to support affected communities.
• National, provincial, and municipal authorities are required to submit progress reports on response initiatives, in line with the requirements of the NDMC.
• Funds may be reallocated from applicable grants to assist in disaster response and recovery efforts.

This classification enables prompt intervention, but the Disaster Management Act also allows me, as the Minister of Cooperative Governance and Traditional Affairs, to declare a National State of Disaster if special circumstances arise that necessitate additional regulatory measures under Section 27 of the Act. It’s important to clarify that these issues have not yet been declared a National State of Disaster; they are currently classified but not declared.

Given the ongoing negative impact of these hazards on the lives of South Africans, we recognise the urgent need to take decisive action to protect the well-being of all citizens and assist our vulnerable communities.

Even as we engage the government, we acknowledge the challenges faced by the country in funding disaster interventions, mainly due to increased disaster damages, fiscal deficit, and competing priorities.

This media briefing is conducted in the interest of accountability and transparency in line with the Batho Pele Principles.

We are, however, pleased that our grant allocations cover over 60 municipalities and provincial sector departments across five provinces, with major investments in Eastern Cape, KwaZulu-Natal, Limpopo, Mpumalanga, and Free State.

Today, we are pleased to confirm that through the NDMC, CoGTA has for the (financial year 2024/25 months of February and March 2025 already disbursed an amount of R1, 444 billion (one billion four hundred and forty four million rands) to ensure immediate relief and reconstruction in the most affected areas. These funds will support a wide range of urgent interventions – from repairing damaged infrastructure and restoring basic services to supporting schools, clinics, and local economies.

The breakdown of the R1,444 billion (one billion four hundred and forty-four million rands disbursed to all municipalities and provincial sector departments is as follows:

• The Provincial Disaster Response Grant Allocation was transferred on February 6, 2025, to provincial departments for the repair of provincially damaged infrastructure. The provinces benefiting from this allocation included the Eastern Cape, KwaZulu-Natal, Mpumalanga, and Limpopo, totaling R149 million.
• The Municipal Disaster Recovery Grant was transferred on March 5, 2025, to the provinces of Limpopo, Eastern Cape, KwaZulu-Natal, and Mpumalanga for the repair of damaged infrastructure, totaling R231 million.
• Another Municipal Disaster Recovery Grant was transferred on March 18, 2025, to the affected municipalities in the Free State, KwaZulu-Natal, Eastern Cape, Limpopo, and Mpumalanga, amounting to R669 million.
• For the Provincial Unavoidable and Unforeseeable (U&U) allocation in 2025, the National Disaster Management Centre, in collaboration with affected provinces, prepared a request to the National Treasury for additional funding. The Western Cape received an initial allocation of R947 million in February 2025, with other provinces being considered.
• The Department submitted the applications for the unavoidable and unforeseeable (U&U) allocation in 2024 for the following provinces: Mpumalanga, Limpopo, Western Cape, KwaZulu Natal and Eastern Cape provinces. The amount of R 947 million was allocated to the Western Cape and the remaining provinces are being considered. The allocated funds are to be utilised within a period of 12 months.
• Disaster Response Grant was allocated to the affected municipalities for the incidents which happened around December 2024 and January 2025 and the allocations were made on 24 March 2025.

1. KwaZulu Natal: R 76 million
2. Mpumalanga: R 11 million
3. Free State: R 10 million

The NDMC is actively coordinating various funding streams in response to the increasing number of disasters occurring across the country. We appreciate the involvement of all stakeholders and the private sector, as effective disaster response relies on a collaborative effort from multiple sectors.

Currently, we are conducting an assessment of the recent classified national disaster. The exact costs are not yet determined, as evaluations are ongoing due to continuous rainfall affecting many regions. We anticipate that the assessment will be completed by the end of April 2025. Following this assessment and verification process, we will allocate funding to support the affected departments and municipalities in the 2025/26 financial year.

We have noticed multiple ongoing challenges that impede the successful execution of infrastructure grants in various municipalities and provinces. These issues diminish the grants’ intended impact and ultimately affect the provision of essential services to our communities.

The following key areas of concern have been identified:

• Poor Infrastructure Planning and Implementation: Poor planning inevitably leads to misaligned projects that neglect essential community needs and lack the resilience to thrive over time.
• Substandard Workmanship: The quality of work delivered frequently fails to meet acceptable standards, resulting in accelerated deterioration of our infrastructure. This undermines long-term sustainability and demands immediate attention for improvement.
• Diversion or Reduction in Project Scope: There have been reports of changes to the original scope of work that are either reduced or modified without proper justification, which compromises service delivery outcomes.
• Delays in Appointment of Service Providers: Lengthy procurement processes significantly delay timely execution and ultimately undermine the performance of municipalities.
• Misuse of Grant Funds for Operational Costs: Some municipalities are misallocating funds intended for vital infrastructure projects, diverting them instead to cover operational expenses. This not only undermines the integrity of the grant conditions but also jeopardises the long-term benefits and sustainability of community development.
• Limited Involvement of MISA and Sector Departments: There is often a lack of collaboration with the Municipal Infrastructure Support Agent (MISA) and relevant sector departments during the planning and implementation phases.
• Weak Monitoring and Contract Management: Inconsistent monitoring and inadequate oversight of contractors and implementing agents significantly contribute to inefficiencies and ultimately result in project failures. It is imperative that we prioritise rigorous oversight to ensure successful outcomes.
• Inadequate Project Design: Numerous projects suffer from poor design, compromising the integrity of infrastructure and leaving it vulnerable to severe weather conditions and structural failures. It’s essential to prioritize robust design practices to safeguard our infrastructure against these risks.
• Delays in Implementation of Sectoral Service Delivery Projects: There are substantial delays in the implementation of projects funded by regular sectoral grants, severely hindering the delivery of essential services. This situation demands urgent attention to ensure that vital programs can proceed without further interruption.
• Reversion of Funds to the National Fiscus: Inadequate planning and execution have resulted in allocated funds remaining unspent and being returned to the National Treasury. This mismanagement directly deprives communities of essential infrastructure and services they desperately need.
• Lack of Reporting and Accountability: There is little to no reporting on fund utilisation, and accountability mechanisms remain weak at both provincial and municipal levels.

The issues we are facing underscore the urgent need for improved governance, better project planning, and enhanced oversight, along with stronger accountability at all levels of implementation. The Department, in collaboration with relevant departments and the Municipal Infrastructure Support Agent (MISA), is intensifying efforts to assist municipalities and provinces in addressing these challenges. Our aim is to ensure that infrastructure investments lead to tangible improvements in the lives of our communities.

While we welcome the allocation of funds for this purpose, we recognise that there have been instances where these funds have not been used as intended. To address this, we have established strict conditions and compliance measures for the use of these grants.

There are key conditions attached to the Municipal Disaster Recovery Grant (MDRG). These conditions are crafted to ensure the effective and accountable use of funds allocated to municipalities for disaster recovery and response, in accordance with applicable legislation and frameworks. The following key conditions for municipalities receiving funding are noteworthy:

1. Compliance with the Division of Revenue Act (DORA) Municipalities must adhere to Section 12 of the 2023 Division of Revenue Act, which clearly defines the roles and responsibilities of the Receiving Officer.
2. Strict Use of Funds for Approved Purposes – The MDRG funds must be used solely for the approved disaster recovery purposes. No portion of the funds may be diverted to unrelated expenses such as compensation, travel, or subsistence payments to municipal employees.
3. Regulatory Framework Compliance – As a conditional grant, the MDRG requires full compliance with all applicable regulatory frameworks, including:
   • Division of Revenue Act (DORA), 2023
   • Municipal Disaster Recovery Grant Framework
   • Municipal Financial Management Act (MFMA), 2003
   • Disaster Management Act (DMA), 2002
   • National Disaster Management Framework (NDMF), 2005
4. Immediate Utilisation of Funds – Approved funds are intended for immediate use by the receiving municipality upon transfer by the National Disaster Management Centre (NDMC).
5. Guiding Documents – Municipalities must consult the DORA and the Municipal Disaster Recovery Grant Framework, which provide detailed guidance on grant conditions, timeframes, and the roles and responsibilities of the various organs of state.
6. Reporting Requirements – Receiving municipalities must comply with strict reporting protocols, including the use of approved templates for monthly, quarterly, and final (closeout) reports. These reports must be submitted to the NDMC through the respective Provincial Disaster Management Centres (PDMCs).

We will follow these funds and consequent management will be instituted where deviations or mismanagement of funds will used as per the Division of Revenue Act and other applicable regulatory frameworks.

Having said that, I want to take a moment to express my heartfelt gratitude to the dedicated officials and volunteers who are unwavering in their commitment to help those in distress during disasters, often in the face of daunting and perilous conditions. Your courage and resilience truly inspire us all.

A special thank you goes to the South African Weather Service for their vital role in delivering timely and accurate information. We extend our appreciation to all our partners – national, provincial, and local government, NGOs, and community organisations – who stand united in this effort.

The Provincial Disaster Management Centres remain steadfast in coordinating our response to crises. We are working closely with municipalities, provincial authorities, and other stakeholders to ensure that our affected communities receive the essential support they need to recover and rebuild.

In conclusion, the allocation of disaster response and recovery grants is a testament to our unwavering commitment to safeguarding our communities and rebuilding our nation. As we navigate these challenging times, it is imperative that we work together, leveraging our collective strengths and resources to ensure a resilient and prosperous future for all South Africans. Let us remain vigilant, proactive, and united in our efforts to mitigate the impacts of natural disasters and build a stronger, more resilient nation. Thank you for your continued support and dedication to this vital cause.

Thank you

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