Representatives of the national and North West Provincial Treasury and the North West Department of Cooperative Governance and Traditional Affairs addressed managers and councillors at the Madibeng Municipality on Friday to introduce the financial intervention in the municipality.
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.
Following an assessment by the provincial Treasury, to determine if the municipality is in serious material breach of its financial commitments, it was found that the municipality is in a financial crisis.
The municipality was already informed of the outcome in July 2021 and during engagements in February this year.
Sections 139(4) or (5) is invoked if the provincial executive is of the opinion that there is a financial crisis in the municipality.
If a municipality, as result of its financial affairs, is in serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments, the relevant provincial executive must impose a recovery plan.