ECPG’S EXECUTIVE COUNCIL RESOLVES TO INVOKE SECTION 139 INTO AMATHOLE DM

WEDNESDAY, 20 JANUARY 2020

ECPG’S EXECUTIVE COUNCIL RESOLVES TO INVOKE SECTION 139 INTO AMATHOLE DM

The Eastern Cape Provincial Government’s Executive Council took a decision to invoke section 139 (5) (a) of the Constitution of the Republic of South Africa into the affairs of the Amathole District Municipality.

This section of our Constitution provides that; “If a municipality, as a 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—

(a) impose a recovery plan aimed at securing the municipality’s ability to meet its obligations to provide basic services or its financial commitments, which—

(i) is to be prepared in accordance with national legislation; and

(ii) binds the municipality in the exercise of its legislative and executive authority, but only to the extent necessary to solve the crisis in its financial affairs.”

This decision of the Executive Council of the Eastern Cape Provincial Government was inspired by the letter sent to the Provincial government by the Amathole District Municipality admitting that the Municipality was unable to meet its financial obligations in terms of paying salaries to its employees, councillors of the Municipality and Traditional leaders in the Municipal council in the coming months because it did not have funds to meet these financial commitments.

The Eastern Cape Provincial Government has engaged national Cooperative Governance and Traditional Affairs and Treasury Departments on this constitutional intervention into the affairs of the Amathole District Municipality as provided for in Section 139 (5) (a) of the Constitution of our country.

The Executive Council of the Eastern Cape Provincial government resolved to establish a political workstream that is made up of the Eastern Cape Cooperative Governance and Traditional Affairs MEC, Xolile Nqatha, Chairperson of the South African Local Government Association in the province, Councillor Mxolisi Koyo, Amathole District Municipality’s Executive Mayor, Councillor
Khanyile Maneli and the Eastern Cape Finance MEC, Mlungisi Mvoko to monitor the implementation of the financial recovery plan.

EXCO resolved that, in agreement with the Municipality, a technical team from both the national and the provincial government will be sent to support the implementation of the financial recovery plan aimed at securing the municipality’s ability to meet its obligations to provide basic services or its financial commitments, as provided for in Section 139 (5) (a) of the Constitution of our country.

A monthly report of the implementation of this Constitutional intervention will be submitted to the Executive Council of the Provincial government by the MEC for Cooperative Governance and Traditional Affairs on a regular basis.

MEC for COGTA, Mr Xolile Nqatha will provide further details on the current financial situation and position of the Amathole District Municipality and the process plan to implement Section 139 (5) (a) of the Constitution of our country into the affairs of the Amathole District Municipality.

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