News Article

Nelson Mandela Bay increases ward councillor discretionary fund

Published: March 16, 2026

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The Nelson Mandela Bay Municipality has increased the Ward Councillor Discretionary Allowance from R100 000 to R150 000 per ward councillor, raising the total annual allocation from R6 million to R9 million per financial year.

The allowance increase was approved during a recent full council meeting.

The Ward Councillor Discretionary Allowance, also referred to as the Ward Councillor Discretionary Fund, is a limited municipal allocation intended to assist councillors in responding to urgent community needs and small-scale social support initiatives within their wards.

The fund enables councillors to assist vulnerable residents, support community-based activities, and address minor but pressing issues, that fall outside normal municipal service delivery programmes.

Council Speaker Eugene Johnson emphasised that the funds are not intended for personal benefit and must be utilised strictly for community purposes in line with approved municipal policies and procedures.

The administration and use of the allowance are primarily governed by the Municipal Finance Management Act (Act 56 of 2003), which regulates municipal expenditure and financial accountability, and the Municipal Systems Act (Act 32 of 2000), which promotes community participation and responsive local governance.

In addition, municipalities usually adopt council-approved policies and oversight mechanisms to ensure the fund is used transparently, responsibly, and strictly for legitimate community development purposes.

Council Speaker Eugene Johnson said the decision to increase the allocation was based on the realities faced by ward councillors working directly with communities.

Ward councillors are at the forefront of the challenges faced by our communities. They need to be in a position to respond through different interventions, one of those being the ability to positively contribute to the socio-economic conditions experienced by our residents.

"The funds might not be enough, but if properly utilised, they can contribute to poverty alleviation, grassroots sport development and addressing other community-based social challenges," Johnson said.

The Ward Councillor Discretionary Allowance is not the only funding mechanism that supports development within municipal wards. Municipalities also implement ward level development through various funding streams provided through national transfers, municipal budgets, and intergovernmental programmes.

These include conditional grants such as the Municipal Infrastructure Grant (MIG), which funds essential infrastructure projects such as roads, sanitation, water supply, and community facilities in underserved areas, as well as the Local Government Equitable Share, which assists municipalities in providing basic services to indigent households.

In addition, municipal capital budgets informed by the Integrated Development Plan (IDP) allocate funding for ward-based infrastructure and service delivery projects identified through community participation processes.

Collectively, these funding streams enable municipalities to address community needs, improve service delivery, and support sustainable development across municipal wards.

Other programmes such as the Community Works Programme (CWP), the Neighbourhood Development Partnership Grant (NDPG), and other provincial or national initiatives further contribute to socio economic development at ward level. – SAnews.gov.za


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