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BACKROUND. Eleven municipalities were identified as requiring immediate support and intervention. These were: Mnquma ? Section 139 (1) (c) Mbashe ? Section 139 (1) (b) Amahlathi - Section 139 (1) (b) Buffalo City - Section 139 (1) (b) Koukamma - Section 139 (1) (b) Alfred Nzo - Section 139 (1
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1. OVERVIEW ON SECTION 139 INTERVENTIONS IN THE PROVINCEPRESENTED TO NCOP24 JUNE 2009
2. BACKROUND Eleven municipalities were identified as requiring immediate support and intervention. These were:
Mnquma Section 139 (1) (c)
Mbashe Section 139 (1) (b)
Amahlathi - Section 139 (1) (b)
Buffalo City - Section 139 (1) (b)
Koukamma - Section 139 (1) (b)
Alfred Nzo - Section 139 (1 (b) 9/2/2012 2
3. BACKGROUND King Sabatha Dalindyebo Section 154
Maletswai Section 106
Sakhisizwe Section 106
Nkonkobe Section 106
Matatiele Section 154
Ukhahlamba Section 154
9/2/2012 3
4. PRIORITISED FOR SECTION 139 Mnquma
Court challenges stalling intervention
Koukamma
Municipality co-operating with the department
Alfred Nzo
Municipality requested intervention & is co-operating 9/2/2012 4
5. ALFRED NZO Administrator has been appointed from 20 April 2009
Areas of responsibility assumed are:
Financial management (financial recovery plan)
Corporate services including general administration and human resource
Infrastructure development and MIG funding
Provincial Legislature, NCOP, SALGA, dplg were informed
First monthly report to the department has been submitted by the Administrator
Currently the municipalitiy is experiencing cash flow problems 9/2/2012 5
6. ALFRED NZO Use of MIG funding inappropriately being dealt with
A forensic investigation has been sanctioned and is due to begin
A Financial Recovery Plan is being developed
Departmental Staff and appointed consultants assist the Administrator 9/2/2012 6
7. KOUKAMMA Administrator has been appointed from 209April 2009
Areas of responsibility assumed are:
Financial management (financial recovery plan)
Corporate services including general administration and human resource
Infrastructure development and disaster management
Public participation
9/2/2012 7
8. Koukamma cont.. Departmental staff and deployees from DBSA assist the Administrator
Financial Recovery Plan is being developed
Provincial Legislature, NCOP, SALGA, dplg were informed
First monthly report has been submitted by the Administrator
There is now subtle resistance regarding the powers of the Administrator
Currently the municipalitiy is experiencing cash flow problems (R4 million bail out for May & June)
9/2/2012 8
9. MNQUMA Situation here is different as there is fierce contestation of the intervention
So far there have been three court challenges and the last one was on 15 May 2009
Court decision is still awaited
Cabinet resolved to intervene on 14 January 2009
Erroneous Notices of dissolution of Mnquma council were gazetted on 23 January & 05 February 2009
Mnquma applied for interdict on 12 February & Notices were withdrawn
MEC intervened on the 13 February 2009 9/2/2012 9
10. MNQUMA On the 16 February challenged dissolution in court and department was ordered out
Memo to Cabinet submitted on February 24 requesting interventions in five other municipalities
Back to the drawing board with Advocate Gauntlett SC and process re-started
In March 2009 representations received from the Municipality & considered
Cabinet resolution on Mnquma intervention on the 07 April 2009
Mnquma dissolution Notices issued to the Municipality, NCOP, SALGA, dplg
Municipality filed another application in court and was heard on 15 May 2009 9/2/2012 10
11. LESSONS LEARNT Legal challenges
Differences in legal interpretation & in disputed facts result in legal challenges.
Legal challenges affect:
Financial resources of the municipality as they are deployed in court battles
Time and energy expended in court battles undermine service delivery
Financial implications
As it is difficult to budget for interventions, other identified priorities would be affected as
funding is required 9/2/2012 11
12. LESSONS LEARNT Political implications
As powers of municipal councils are affected by interventions this leads to resistance in
defence of political space or polarisation in council.
Inter-governmental Relations
As a result of this closing of ranks intended hands on support to a municipality is
prejudiced and inter-governmental relations tested to the limit .
9/2/2012 12
13. CONCLUSION These challenges are a lesson and a guide that interventions carried out
within the context of promoting sound inter-governmental relations, aimed at
enhancing service delivery and promoting good governance are a legal
necessity. What is required is a fine balancing act. 9/2/2012 13
14. THE DEPARTMENT THANKS YOU