North West Treasury intervenes in Madibeng’s finances

The North West Treasury is to intervene in the Madibeng municipality’s financial affairs.

The municipality was notified in March that the North West Government is invoking a mandatory intervention under Section 139(5) and (c) of the constitution. Section 139(5) is invoked in municipalities with serious financial problems.

According to a letter to Madibeng, the Provincial Treasury conducted an assessment to determine if the municipality is in serious material breach of its financial commitments and found that the municipality is in a financial crisis. According to the letter, the municipality was informed of the outcome in July 2021 and engagements in February this year.

If the provincial executive is of the opinion that there is a financial crisis in the municipality, its recourse is in sections 139(4) or (5). If a municipality, as result of a crisis in its financial affairs, is in serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments, or admits that it is unable to meet its obligations or financial commitments, the relevant provincial executive must impose a recovery plan aimed at securing the municipality’s ability to meet its obligations to provide basic services or its financial commitments.

Madibeng must now table a report to the municipal council. It is not known when the intervention will start.