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OVERVIEW ON SECTION 139 INTERVENTIONS IN THE PROVINCE PRESENTED TO NCOP 24 JUNE 2009

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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OVERVIEW ON SECTION 139 INTERVENTIONS IN THE PROVINCE PRESENTED TO NCOP 24 JUNE 2009

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    1. OVERVIEW ON SECTION 139 INTERVENTIONS IN THE PROVINCE PRESENTED TO NCOP 24 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

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