The City of Polokwane could lose nearly R300-million due to poor performance.
National Treasury has written to the municipality of its intention to withdraw the allocation.
The possible withdrawal would affect services like water.
During last week’s State of the Province Address, Limpopo Premier Stan Mathabatha said he expects municipalities to invest more in the development and maintenance of water, sanitation, electricity, and road infrastructure.
In a letter dated 27 February, Treasury gave Polokwane seven days to make representations regarding the intended withdrawal.
Executive Mayor John Mpe attributes poor performance to alleged corruption in some of the projects and says the investigation he instituted delayed some of the projects.
Last year, Polokwane forfeited R142-million to the National Treasury, money that could’ve been used to improve services.
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