Nod to step in
Exco endorses administration move
THE provincial executive council (Exco) has endorsed department of cooperative governance and traditional affairs (Cogta) MEC Fikile Xasa’s intention to place the troubled Enoch Mgijima Local Municipality (EMLM) under administration.
This decision was taken during the cabinet’s fifth term sitting at Bhisho state house on August 1, following two letters from Xasa to the local authority citing why EMLM needed provincial intervention.
The letters from the MEC indicated EMLM had failed to fill vacancies and had acting directors which cost the municipality extra, the municipality was suffering from political instability with excessive irregular expenditure and a lack of service delivery and the local authority was unable to pay its debts and was struggling to collect revenue.
Since the appointment of a new mayor, Sisisi Tolashe, and municipal manager Chris Magwangqana this year, the local authority had, however, cleared its Eskom debt, also managing to pay a R21m debt incurred by the erstwhile Nkwanca Municipality and had started fixing disintegrated roads in Ezibeleni.
Provincial government spokesman Sonwabo Mbananga said cabinet endorsed Xasa’s intention to invoke section 139(1) (b) of the constitution which included the placement of an administrator to oversee EMLM’s financial affairs on behalf of the Exco.
“Cabinet has mandated the Cogta MEC to appoint an administrator who will start working as soon as the appointment has been made. It has also endorsed invoking the mandatory provisions of section 139 (5) of the constitution to request the municipal financial recovery service to assess the causes for the financial crisis and develop a financial recovery plan. According to information received, EMLM mayor Tolashe is in talks with Cogta to challenge cabinet’s decision. Her reasons include not being given enough time as a new mayor to implement her turnaround plan, not receiving support from Cogta during the amalgamation transition and (she has) requested the pre-amalgamation report.”
Section 139(1) (b) indicates that when a municipality does not fulfil an executive obligation in terms of the constitution, the relevant provincial executive may intervene by taking any appropriate steps to ensure fulfillment of such an obligation, including assuming responsibility to the extent necessary to maintain essential national standards or to meet established minimum standards for the rendering of a service.
The Rep reported (“ANC marches in support of EMLM”, July 20) that ANC Komani cluster coordinator Mxolisi Oliphant said Xasa had no reason to place the municipality under administration because all the matters addressed in his latest letter had been taken care of.
“All critical posts have been filled after people were in acting positions for the longest time, revenue collection has increased, the mayor and municipal manager’s turnaround strategy has not been implemented yet, the Integrated Development Plan and budget have been adopted, all municipal structures are fully functional, there is no political instability and Eskom and Milowo Enterprise Trading have been fully paid.”
Oliphant said at the time that the MEC had no reason to place an administrator at EMLM and that it had been proven in many municipalities that the placement of an administrator was “suicidal” and not a workable solution. “An administrator was placed in former Nkwanca Local Municipality and it not did improve anything, but caused further turmoil both politically and administratively.” Axolile Masiza of Komani Residents, a civic organisation from Mlungisi, said they had been calling for intervention and were happy that something was being done.
“This is a step in the right direction after calling for intervention for a long time. If Cogta will appoint an administrator solely because they are an ANC member and have not been deployed anywhere, no positive change will happen. We want someone who will come here to bring about change. If the administrator does not win, this municipality will have to be dissolved.”
Magwangqana said he had not received any communication from Cogta regarding the placement on an administrator in the local authority. No formal communication on the administration move had been received from Cogta at the time of going to press.