(a). It should be noted that outside the funding allocation made by the Department of Sport, Arts and Culture (DSAC) from a ring-fenced Municipal Infrastructure Grant (MIG) administered by Department of Cooperative Affairs and Traditional Affairs (COGTA), municipalities are required to use at least 5% of their baseline MIG on sport infrastructure.
This means that besides the ring-fenced MIG allocated by DSAC, the baseline MIG that municipalities receive from the COGTA can and should also be used towards development of sport facilities, and this is the budget used to construct this is sport facility in question.
In essence funds used for this facility were not allocated by DSAC, and in fact National DSAC learnt about the project through the media and the resultant public outcry.
For this reason, as part of holding the municipality accountable, DSAC had a meeting with the Municipality, Provincial COGTA, and Provincial Treasury to establish all the facts about the project as was reported through the media.
Subsequent to this meeting a report providing an account of all developments in the project was provided (See Annexure A), and this was the extent of the involvement of National DSAC on holding the Municipality accountable.
Regarding consequence management that must be sanctioned against persons found to be at fault, the Department must allow relevant parties (i.e., the Municipality, Provincial COGTA, Provincial Treasury and Auditor-General) to pursue such a process, as this does fall within its mandate.
(b). In 2017/18 DSAC allocated Winnie Madikizela Mandela Local Municipality (then called Mbizana Local Municipality) R12 000 000 for construction of some of the items in Mphuthumi Mafumbatha Sport Facility. The Scope of Work funded by DSAC included:
Additional to the above, municipality funded the following items from its own budget:
Whilst DSAC make allocations from the ring-fenced MIG to Municipalities for the purpose of development of sport facilities, the funds are transferred by COGTA to the Municipalities, and the latter follow their own Supply Chain Management processes to appoint a suitable bidder. DSAC is not involved with this process, and any transgressions in this process should be dealt with by relevant and competent parties.