Modimolle-Mookgopong Local Municipality has been placed under Section 139 of the Constitution following its alleged failure to pay employees their May salaries, Eskom bill to the tune of over R260 million and Magalies Water Board debt exceeding R12 million.
The decision was taken by the Executive Council (Exco) during a meeting yesterday (Wednesday). When briefing journalists during a post-Exco media briefing this morning, Provincial Government Spokesperson Phuti Seloba said the municipality has been placed under Section 139 with the provision that the Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) will make a determination on whether the intervention will be in terms of either sub-section 139(1)(a) or (1)(b) after having considered all the factors.
He further said the department, together with Provincial Treasury, will work on the financial resources to implement the intervention while Provincial Treasury undertakes a forensic investigation on all municipal activities to determine the extent of the challenges and remedial actions necessary to be undertaken.
“The municipality is technically bankrupt and owes Eskom more than R260 million, which is the highest debt accrued by any municipality in the province, while the Magalies Water Board debt exceeds R12 million. In order to determine the extent of the challenge following engagements between Coghsta, Provincial Treasury and the municipality, a Rapid Assessment Team was established constituted by Coghsta, Provincial Treasury and the South African Local Government Association (Salga),” Seloba explained.
He further indicated that the team was mandated to provide a report on the state of affairs of the municipality focusing on all key functional areas with specific recommendations for remedial actions and support required. The Rapid Assessment Team confirmed that the state of governance in the municipality is worsening, and that the municipality will soon collapse if no immediate action is taken, he stated as he added that the municipality has not been able to honour its financial obligations, including payment of salaries and third party obligations on 25 May 2018. This situation is likely to continue for a while until the municipality is stabilised, said Seloba.
He stated that the municipality has been experiencing serious institutional, financial and governance challenges since its establishment on 3 August 2016 and reiterated that the municipality is characterised by a high vacancy rate at senior management level wherein only two out of seven positions are filled.
He concluded by saying the Provincial Government’s intervention includes paying officials salaries and making sure that the situation stabilises for the municipality to be functional again.
Story: ENDY SENYATSI
>>endy@observer.co.za
