The KwaZulu-Natal Provincial Executive Council chaired by Premier Nomusa Dube-Ncube convened a special meeting on Monday evening, 29 April 2024 to reflect on pertinent issues and the state of some municipalities in the Province.
The Provincial Executive Council received detailed reports from the Technical Team of the Provincial Department of Cooperative Governance and Traditional Affairs, on the state of municipalities that are under Section 139 interventions as well as municipalities that are facing administrative and governance challenges.
The Cabinet sitting was convened to receive presentations and recommendations from the CoGTA technical team and thus make its resolutions on those recommendations.
1. MSUNDUZI LOCAL MUNICIPALITY
The Provincial Executive Council has resolved to uplift the intervention in terms of section 139(1)(b) of the Constitution of the Republic of South Africa, 1996 at the Msunduzi Local Municipality. This comes after Cabinet noted and welcomed the substantial improvement in resolving 6 out of 8 triggers that previously led to the decision to intervene in the municipality.
In April 2019, The Executive Council intervened in the Msunduzi Municipality in terms of section 139(1)(b) of the Constitution because of the following triggers:
a) Failure by the Municipality to hold Councillors accountable for deliberately absenting themselves from critical meetings.
b) Failure to institute consequence management measures.
c) Failure by the Council to exercise oversight on management with particular reference to the management of conditional grants.
d) Failure to take reasonable steps to prevent unauthorized and irregular expenditure.
e) Failure by the Council to implement consequence management measures against persons responsible for incorrectly or failing to maintain proper records.
f) Failure by the Council to investigate allegations of malfeasance and maladministration against senior managers and other leaders of the municipality.
While great milestones were noted by the Provincial Executive Council on the commitment made by Msunduzi Municipality in dealing with issues relating to waste management service, water services, electricity service and road infrastructure, the Provincial Executive Council further resolved that the Msunduzi Municipality should be given a chance in terms of section 139(1)(a) to develop a six month implementable recovery plan and submit it within 14 days to the MEC for CoGTA to address the following triggers:
a) Failure by the Council to exercise oversight over management resulting in the cash position of the Municipality being overdrawn.
b) Failure by Council to resolve service delivery challenges, (Waste Management, Roads Management and Electricity).
The Provincial Executive Council will monitor the implementation of the recovery plan by Msunduzi Municipality on a monthly basis until the end of October 2024.
2. UMKHANYAKUDE DISTRICT MUNICIPALITY
In the uMkhanyakude District Municipality (UKDM), while the Provincial Executive Council noted impressive progress in many areas, it however resolved to extend the section 139(1)(b) intervention for a further period of 6 months so that the municipality may be assisted to address niggling issues.
In January 2021, the Executive Council intervened in UKDM in terms of section 139(1)(b) and (4) of the Constitution, . This time the PEC reviewed the terms and conditions of the original (January 2021) intervention to assume more Municipal executive powers to save the Municipality from imminent total collapse.
In addition to the January 2021 original Intervention, the Executive Council assumed further additional Executive Powers of the Municipality in terms of Section 139(4) of the Constitution, in July 2022 when the Municipal Council failed to approve its 2022/2023 budget and associated revenue-raising measures.
The Executive Council noted that the municipality has managed to prepare and submit its IDP and Budget on time. It was also noted that the municipality, working closely with uThukela UMngeni Water Board, has managed to unlock the long outstanding water related backlogs that have been affecting the communities of uMkhanyakude District.
The Executive Council resolved to extend the intervention in terms of section 139(1)(b) of the Constitution in uMkhanyakude District Municipality in order for the municipality to address the following remaining challenges:
a) Precarious cash flow position
b) Prevent and investigate UIFW expenditure.
c) Poor project management and supervision
d) Lack of preventative maintenance programme.
The Provincial Executive Council was encouraged to note that the municipality improved its audit outcome from a Disclaimer to a Qualified audit report for the 2022/23 financial year.
3. MPOFANA LM, INKOSI LANGALIBALELE LM AND INKOSI MTUBATUBA LOCAL MUNICIPALITIES
The Provincial Executive Council noted commitments by Mpofana LM, iNkosi Langalibalele LM, and iNkosi Mtubatuba LM in resolving the below triggers which led these municipalities being subjected to section 139(1)(b) interventions:
(a) Prevention and investigation of UIFW expenditure.
(b) Filling of Vacancies.
(c) Audit Outcomes.
(d) Implementation of recommendations because of the Forensic Investigations that were conducted by the MEC for Cogta.
The Provincial Executive Committee has appealed to the leadership of these four municipalities to try and work harder in finalizing the above triggers as per the recovery plans which has been approved by the MEC for Cogta. Therefore, the Provincial Executive Council resolved to extend the section 139(1)(b) intervention in the Mpofana, iNkosi Langalibalele and, iNkosi Mtubatuba Local Municipalities.
4. UTHUKELA DM AND UMZINYATHI DM
The Executive Council resolved to extend the section 139(1)(b) intervention for a further period of 6 months in both uThukela and uMzinyathi District Municipality. These two municipalities were regarded as dysfunctional and require extensive interventions with additional terms of references to address pervasive challenges.
The Provincial Executive Council expressed disappointment that these municipalities are regressing. Cabinet also supported the efforts initiated by the MEC for Cogta in calling for the Minister of Water and Sanitation, Mr Senzo Mchunu to intervene in terms of section 63 and 41(1)(ii) of the Water Services Act, 1997.
a) Both municipalities have failed to approve the funded budgets over the last 3 years besides all the support that is being provided through the provincial interventions.
b) The Provincial Executive Council extended its disappointment on how the Council of uMzinyathi District Municipality has failed to improve its audit outcomes as it regressed from a Qualified Audit Opinion to an Adverse Audit Opinion in 2022/23 financial year. A joint turnaround plan is therefore required to address this audit outcome challenges and the implementation of the Auditor General Action Plan.
5. UMHLATHUZE LOCAL MUNICIPALITY
The Provincial Executive Council resolved to issue a Directive in terms of section 139(1)(a) of the Constitution in the uMhlathuze LM, which will be properly communicated to the municipality in due course.
The Provincial Executive Council noted serious challenges besetting this Municipality emanating from the unilateral decision to reconfigure the size of the Executive Committee (EXCO) in February 2023, in full breach of the provision of section 43, 46 and 53 of the Municipal Structures Act.
To bring this matter to the attention of the municipal council, the MEC for CoGTA advised the Municipality in March 2023 to reverse this unilateral decision. However, the Municipality resisted the advice. The Department has since approached a court of law for an order to set aside the unlawful resolution. The matter is set down for 14 June 2024.
The Provincial Executive Council also noted with grave concerns the shooting incident that took plan on Thursday of the 28 March 2024 at 08h30, shortly before the full Council session to adopt the draft 2024/2025 IDP and Budget. A message of condolences was extended to the families affected and the Executive Council called for an extensive investigation into the matter.
6. ZULULAND DISTRICT MUNICIPALITY
The Provincial Executive Council noted the serious governance and institutional management challenges at the Zululand District Municipality and resolved to refer the matter to CoGTA for further consideration.
7. NONGOMA LOCAL MUNICIPALITY
The Provincial Executive Council expressed concern regarding the developments at the Nongoma Local Municipality following the arrest of the Municipal Manager, Chief Financial Officer, and Supply Chain Manager. The Provincial Executive Council commended the Law Enforcement agencies for their investigation, and the swift arrest of those alleged to have been involved
8. UMZUMBE LOCAL MUNICIPALITY
The Provincial Executive Council noted a report on the total collapse of governance structures and institutional administration systems within Umzumbe LM and resolved to intervene in terms of section 139(1)(b) of the Constitution and assumed numerous executive obligations that the Municipal Council had failed to perform.
Ends
For more information contact Head of Provincial Government Communication Bongi Gwala on 072 793 4757 or Joseph Cubai Acting Media Liaison Officer on 061 421 5853
Issued by Provincial Government
2