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 (b)

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BACKGROUND

King Sabatha Dalindyebo – Section 154

Maletswai – Section 106

Sakhisizwe Section 106

Nkonkobe – Section 106

Matatiele – Section 154

Ukhahlamba – Section 154

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PRIORITISED FOR SECTION 139

• Mnquma

Court challenges stalling intervention

• Koukamma

Municipality co-operating with the department

• Alfred Nzo

Municipality requested intervention & is co-operating

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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

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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

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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

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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)

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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

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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

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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

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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 .

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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.

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THE DEPARTMENT THANKS YOU

Additional Text to be placed here

Tyamzashe Building · Phalo Avenue · Private Bag X0035 · Bhisho · 5605 Eastern Cape · REPUBLIC OF SOUTH AFRICATel: +27 (0)40 609 5578 · Fax: 086 514 1097 · website: www.ecprov.gov.za/lgta/