No funding requests received for R5 billion flood damage in Eastern Cape, says Godongwana
Image: Independent Newspapers
Despite R546 million set aside by the National Treasury in the 2025/26 financial year for immediate response to disasters, no funds have been allocated following last month's devastating floods in the Eastern Cape.
This is according to Finance Minister Enoch Godongwana when he was replying to written parliamentary questions from EFF MP Veronica Mente-Nkuna.
'The National Treasury has not yet received disaster response funding applications for the Eastern Cape floods from the Department of Cooperative Governance (DCoG). Therefore, funds are yet to be allocated to Eastern Cape departments and municipalities from both grants,' Godongwana said.
He said the 2025 Division of Revenue Bill has a provision for R395m in the Municipal Disaster Response Grant and R151m in the Provincial Disaster Response Grant that are administered by the DCoG.
Both grants are not allocated to specific municipalities and provinces at the time of the tabling of the Bill, he said.
Godongwana also said a further R518m was allocated in the Emergency Housing Fund, which is administered by the Department of Human Settlements.
'The Minister of Human Settlements is best placed to advise on how much, if any, has been allocated to respond to the Eastern Cape floods.'
He explained that both the disaster grant and emergency funding are for urgent repairs to infrastructure and housing.
'The Minister of Cooperative Governance and Traditional Affairs and the Minister of Human Settlements are best placed to advise on the specific line items for the repairs provided for.'
Responding to separate questions from EFF MP Vuyani Pambo, Godongwana said the verified cost of damages caused by the June floods stood at R5 billion as assessed by the Municipal Infrastructure Support Agency.
He reiterated that the National Treasury has not yet received funding applications from DCoG.
'These applications are expected to account for insurance coverage and the reprioritisation of existing revenues by the affected organs of state.
'Once DCoG submits its recommendations and the applications are processed, any allocations from the national fiscus will be governed by the conditions set out in the relevant conditional grant frameworks, including the reporting requirements stipulated in Section 12 of the Division of Revenue Act.'
Meanwhile, Cooperative and Governance Minister Velenkosini Hlabisa confirmed that 22 people were accommodated in temporary emergency accommodation in Butterworth and Mthatha, which fall under the Mnquma and King Sabata Dalindyebo municipalities.
'According to the province, no Temporary Relief Units (TRUs) have been provided by the Department of Human Settlements to the affected households in the Eastern Cape yet, as the province has been advised to reprioritise their existing grants for intervention measures.
'This reprioritisation of funds has been enabled by the classification of a disaster by the National Disaster Management Centre,' Hlabisa said.
He also said the provincial Department of Human Settlements has applied to the National Department of Human Settlements for the reprioritisation of the Informal Settlements Upgrading Grant and the Human Settlements Development Grant for disaster intervention measures.
'The Department of Human Settlements has activated emergency procurement policy to source contractors for additional TRUs utilising the existing panel of contractors, and the estimated appointment is by the 3rd week of July 2025.'
Meanwhile, the Eastern Cape Cabinet earlier this week commended the provincial departments for setting aside 2% of their budgets for disaster response efforts.
'The Cabinet noted the reprioritisation of funds by departments to accommodate the response to this disaster,' said provincial government spokesperson Khuselwa Rantjie.
Rantjie also said the provincial government has prioritised the construction and allocation of TRUs in the high-priority areas affected by the floods in Mthatha and Butterworth.
The construction of TRUs is at an advanced stage, with 28 ready for occupation and three expected to be completed on Thursday in Butterworth.
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