3.4 The Mbhashe Local Municipality The Mbhashe Local Municipality (MBLM) reported that it has collected 93 percent of the planned revenue collection. The MBLM further reported that it is 80 percent grant dependent; 30 percent of its operating budget was spent on salaries; 68 percent was spent on repairs and maintenance; the total capital grant in comparison to the total capital budget is 91 percent. MBLM reported that, through Integrated National Electrification Programme Grant (INEP), 38 villages (3512 household) are to be electrified and a sum of R10 million has been set aside. The MBLM said that electrification project is divided into phases, the first phase targets 700 households, of these 500 household have been give access to electricity and the remaining 200 are to be given access to electricity by 07 August 2010. Futhermore, the MBLM said that the Municipal Infrastructure Grant funds have been spent but there is a variance of R104 054 872.47; the Municipal Systems Improvement Grant has a variance of R290 495.00; and the Financial Management Grant has a variance of R34 571 which is committed to travelling and accommodation.