Question NW1647 to the Minister of Cooperative Governance and Traditional Affairs

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17 June 2022 - NW1647

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

What measures is her department taking to prevent the deterioration of (a) finances and (b) provision services in the Manguang Metropolitan Municipality, especially in light of the specified municipality’s inability to service its bulk debt to Bloem Water and the resultant water restrictions experienced by residents?

Reply:

The national executive intervened in the Mangaung Metropolitan Municipality (the Metro) in terms of section 139(7) of the Constitution of the Republic of South Africa, 1996, read with section 150 of the Municipal Finance Management Act No. 56 of 2003. The intervention is jointly led by the Department of Cooperative Governance (DCoG) and the National Treasury.

On 20 April 2022, the Minister of Cooperative Governance and Traditional Affairs (CoGTA), together with senior officials from the DCoG, attended and addressed a special council meeting of the Metro. Also in attendance were officials from the Free State Government led by the Premier and accompanied by the provincial MEC’s of Finance and CoGTA, as well as senior officials from their respective Departments.

The purpose of the special council meeting was to communicate the Cabinet decision for placing the Metro under national intervention and the implications thereof. Subsequently, on 28 April 2022 the Minister of Finance published the Terms of Reference (copy attached) to guide the work of the intervention team that have been seconded to the Metro by DCoG, National Treasury, and sector Departments from national and provincial government.

The areas of financial management and the provision of services are amongst the various areas of work that the intervention team will be focusing on.