28 September 2022 - NW3165
George, Dr DT to ask the Minister of Finance
Whether the National Treasury is involved in the administration of the Makana Local Municipality; if not, why not; if so, what are the details of the involvement of the National Treasury?
Yes. The Minister of Finance is responsible for administering the Municipal Finance Management Act (MFMA) in all the 257 municipalities in the country. The National Treasury in collaboration with the Eastern Cape Provincial Treasury continue to perform the monitoring and oversight role to Makana Local Municipality in terms of the MFMA.
In addition, the municipality is currently placed under intervention in terms of Section 139 (1) and (5) of the Constitution because of a crisis in its financial and service delivery affairs. This is a mandatory intervention by the Eastern Cape Provincial Executive; however, the Municipal Finance Recovery Services unit in the National Treasury has drafted the Financial Recovery Plan for this intervention as is required in all mandatory interventions.
The financial recovery plan was prepared in July 2021 and handed to the municipality for implementation. The recovery plan is monitored by the National Treasury and the Eastern Cape Provincial Treasury.