Dear Portfolio Committee on Cooperative Governance and Traditional Affairs,

Dr. Z. Mkhize
Chairperson
Parliament, Cape Town

I watched the sessions on the Free State Parliament visit with interest to have an opportunity to present the solution

PROBLEMS
We know what the problems are.
Grants do not provide solutions to the municipalities.

SOLUTION
Use NT grant funding to raising foreign direct investments for the municipalities

1. Establish a committee to be responsible for approving payments
2. There are several Ai tools to determine if there are ghost workers (can provide free)
3. happy to explore an SPV to be established to roll-out new infrastructure projects (all future NT grants will require to be deposited to this SPV)
Each municipality will establish its own SPV. Financing partner will own minority equity interest. All disbursements will be a s per foard pre-approval in the SPV. Provincial treasury representative will sit in the SPV, CFO of the municipality will also sit in the board
4. Financing will be channeled to this SPV in drawdowns over financial year period.
5. Financing partner shall appoint its project manager to oversea implementation of all projects.
6. Existing supply chain service provider appointments shall remain and continue.
7. NT to transfer grant funding to an ESCROW account and used as completion guarantee for the financing partner

EXAMPLE
NT to transfer R80m to the ESCROW account then the financier will make available R325m for use by the municipality in fulfilling its infrastructure obligations

Happy to engage and discuss further if this will assist bring foreign direct investment to south africa and hopefully create jobs


regards