The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements and Water & Sanitation) is of the view that invoking Section 106(1)(b) of the Municipal Systems Act in various municipalities can and must get answers for the benefit of quality service delivery for the people. The committee has, over the past two weeks, received presentations from provincial executives of North West and KwaZulu-Natal on the reasons behind the department's decision to institute investigations.
"While we do not want to pre-empt the investigations, the committee emphasises that the continued malfeasance in supply chain management, financial management malpractice undermines service delivery and communities' trust in their government. Whatever is uncovered through these investigations must be followed by concomitant consequences management," said Mr Mxolisi Kaunda, the Chairperson of the committee.
For Madibeng Local Municipality, the investigation was necessitated by a whistleblower report that alleged various corruption and other offences in the municipality, including allegations of duplicate payments to the same company over several years; allegations of supply chain management deviations in contravention of the Municipal Finance Management Act; non-implementation of recommendations from several forensic investigation, including the VBS matter; and irregular appointment of contractors. The committee views good governance as a critical foundation in a functional municipality that creates a platform for quality service delivery.
In the UMkhanyakude Local Municipality, the investigation was necessitated by whistleblower information that alleged fraud, corruption and maladministration, especially relating to the Nondabuya Water Project, which was initiated to provide water to 2 400 households. The committee considers it extremely concerning that the project, which began in 2018, is not yet complete, although the R151 million budget has been used up. Also concerning is that only 700 households benefited of the 2 400, which represents a mere 30% access rate to water.
The importance of municipalities and water as a key driver in resolving socio-economic challenges was clearly articulated by the President during his State of the Nation Address, and the committee views this intervention as a direct response to the commitment to make water and sanitation a key government priority. The three key initiatives identified by the President that this intervention responds to are ensuring the timely roll-out of infrastructure projects, ensuring that municipalities are able to deliver on their mandate and improving access to water, especially in rural communities.
The committee has emphasised that the investigation team must conclude their work on the allegations within the stipulated timeframes. Also critical is for the municipalities to implement remedial action upon conclusion of the investigation. The committee has requested that it be furnished with the full reports of the investigations to enable it to monitor the progress of implementing recommendations and consequence management.
Meanwhile, the committee received presentations on a Section 139 (5)(a) intervention in Theewaterskloof Municipality in the Western Cape and a Section 139 (1)(b) intervention in Nala Local Municipality in the Free State.
Theewaterskloof Local Municipality
The Western Cape provincial executive decided to intervene following the observance of rapid deterioration in the municipality's financial affairs, including low collection rates and R47.251 million owed to creditors for more than 30 days. Through Section 139 (5)(a), the provincial executive can impose a financial recovery plan that binds the municipality in the exercise of its legislative and executive authority and is used as an instrument to guide the municipality in addressing its financial crisis, while ensuring that the municipality regains its financial health timeously and addresses the underlying issues comprehensively.
Nala Local Municipality
The Free State provincial executive decided to invoke Section 139 (1)(b) of the Constitution following various governance and administrative challenges affecting the municipality's ability to provide quality service delivery. Some of the challenges include the council's inability to sit since October 2024, the unfunded 2024/25 budget, the municipality has been unable to fill two vacant senior manager positions since 2023, and that the municipality has been unable to make the payments due in terms of the Eskom Debt Relief programme.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The committee will visit the two municipalities to engage with both internal and external stakeholders on the need for the interventions.
Meanwhile, the committee will tomorrow meet with the Office of the Auditor-General to receive the 2023/24 local government audit outcomes. The committee views the report as critical to ascertaining the state of municipalities and their ability to deliver quality services to the people.
Details of the meeting
Date: Thursday, 29 May 2025
Time: 08:00
Venue, S35, NCOP Building
