Picture: North West MEC for COGHSTA, Mmoloki Cwaile
By OBAKENG MAJE
North West MEC for Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA), Mmoloki Cwaile said municipalities continue to be in ‘a dire state’ despite the important intervention unilaterally imposed to them by inter-government.
According to reports, most municipalities in the province are either bankrupt or dysfunctional.
Cwaile said his department may liquefy few municipalities soon.
“As the department, we continue to interact and engage different authorities, stakeholders and role-players with active intention of finding progressive and responsive solutions to the challenges facing the municipalities in the province.
“We are also considering invocation of Section 139 1(c) and that means we might dissolve some of the municipalities, especially those who are resisting the intervention and assistance of the province, MISA, or other role players from national,” he said.
He further said they are also considering how they can re-package Section 154 and provide support to other municipalities that need support. Cwaile said they consider all the options, including the business rescue, where the national department might have to take some municipalities.
Even though Cwaile said they are determined to find solutions to the challenges facing all these municipalities, some of the municipal officials oppose the interventions utilizing provisions of Section 139 (c).
Tswaing, Kgetlengrivier, Ditsobotla, and Ratlou Local Municipalities are expected to be dissolved in near future.
Meanwhile, the North West MEC for Treasury, Motlalepula Rosho said this during her departmental budget speech: “The material governance shortcomings in the local government sphere has resulted in municipalities not being able to appreciate, embrace, absorb and internalise the support and capacity building measures provided by the Provincial Treasury.
“This has further dampened the state of the municipal financial health, resulting in the current negative audit outcomes and poor financial management that we continue to experience and witness.”
She said there is no contestation and the municipalities are operating under severe financial crisis. Rosho further said this calls for urgent and intensified action to be taken to avoid a total collapse of municipalities.
“Section 139 (5) of the Constitution read together with Chapter 13 of the Municipal Finance Management Act (MFMA) mandates the provincial Government to intervene in those municipalities that have been identified to be operating under severe financial crisis.
“The department collaboration with COGHSTA department has developed the roadmap that details specific mandatory interventions that will be implemented in municipalities operating under severe financial crisis,” said Rosho.
She said consultative sessions were held with mayors of municipalities, National and Provincial department of COGHTSA as well as National Treasury, focusing on municipalities that have been operating under financial crisis.
Rosho said resultantly, her department in collaboration with COGHSTA and SALGA, will be providing extensive and comprehensive training on sound financial management principles to the newly-elected councillors.
“This capacity building initiative will be geared towards ensuring that the newly-elected councillors acquire in-depth knowledge and understanding of financial management elements that should enhance their oversight role and accountability of the incoming administrations.
“The Provincial Treasury is expected to support and assist municipalities in building their capacity for efficient, effective, and transparent financial management in line with Section 154 of the Constitution read together with Section 34 of the Municipal Finance Management Act,” said Rosho.
The Guardian 