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Municipal Systems Improvement Grant (MSIG) Select Committee on Appropriations 06 April 2011

Municipal Systems Improvement Grant (MSIG) Select Committee on Appropriations 06 April 2011. Background. The Municipal Systems Improvement Grant (MSIG) is a conditional grant directed at district municipalities and selected local municipalities. Purpose.

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Municipal Systems Improvement Grant (MSIG) Select Committee on Appropriations 06 April 2011

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  1. Municipal Systems Improvement Grant (MSIG) Select Committee on Appropriations 06 April 2011

  2. Background • The Municipal Systems Improvement Grant (MSIG) is a conditional grant directed at district municipalities and selected local municipalities.

  3. Purpose • To support municipalities in implementing new systems as provided in the Municipal Systems Act, Municipal Structures Act and other related local government policy and legislation to can carry mandated functions effectively. • The MSIG allocation for 2011/12 is R219.4 million, 2012/13: R230 million and 2013/14: R243 million

  4. Outputs • Number of municipalities with strengthened administrative systems enabling effective implementation of the ward participation system • Number of municipalities implementing by-laws, policies and systems that support local government legislation • Number of municipalities with information systems that support effective service delivery • Number of municipalities that developed turnaround strategies and are implementing the strategies

  5. Criterion for allocation • Currently, there is no scientific formula to allocate this support grant to municipalities with various or unique challenges.  • Minimum allocation is R780,000 and maximum R1,2 million per municipality • Municipalities receiving R1,2 million are those who had long term plans developed by service delivery facilitators • Allocation to NW 397 was done after re-allocating funds from Mangaung which will become a metro after 28 May 2011.

  6. Recommendation • That the proposed adjustments / reallocations be approved.

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