Question NW3434 to the Minister of Cooperative Governance and Traditional
20 November 2023 - NW3434
Groenewald, Mr IM to ask the Minister of Cooperative Governance and Traditional
(1) What was the total annual expenditure countrywide from 1 April 2019 to date on the (a) deployment to provinces and municipalities and (b) payments of administrators in terms of section 139 of the Constitution of the Republic of South Africa, 1996, and the Municipal Finance Management Act, Act 56 of 2003, by the (i) national Government, (ii) provinces and (iii) municipalities. (2) whether she will make a statement on the matter?
Reply:
1. a) The prerogative to invoke Section 139 as stipulated in the Constitution vests in the Provincial Executive Committees (b) and they also decide the remuneration of Administrators. National government, through the National Treasury, had invoked Section 139 (7) in Lekwa (Mpumalanga), Mangaung (Free State) and Enoch Mgijima (Eastern Cape) led by National Cabinet Representatives (NCRs). The following is the breakdown of the contract values for each intervention:
(i) Lekwa Local Municipality
The Section 139 (7) has been implemented since April 2021 and approximately R4,5 million (inclusive of VAT) was spent on the NCR fees to implement the intervention. In addition, the province assisted with the deployment of resources to assist the NCR together with CoGTA national seconding a resource to support and monitor the implementation of the intervention. The NCR left the municipality in end of August 2022.
(ii) Mangaung Metropolitan Municipality
The Section 139 (7) has been implemented since April 2022 and a contract value of R14,208,480 (incl. VAT) was spent for a period of a year that included fees for the NCR, with team of specialist ranging from governance, finance, service delivery and a small admin support team. The company did not charge for disbursements and agreed to absorb these costs. CoGTA also seconded resources to serve in the Administration. The NCR left Mangaung end of August 2023.
(iii) Enoch Mgijima Local Municipality
The intervention was implemented from April 2022 and the contract of the NCR has since lapsed. A total value of R12,956,170 (incl. VAT) including disbursement fees of approximately R1,5 million was spent to pay the NCR, and a team of specialists ranging from governance, finance, service delivery and a small admin support team. The team comprised of approximately 12 people..
For Sub section (ii) the prerogative to invoke Section 139 rests with provincial PECs as well as decisions on budgets to pay Administrators and (iii) in the case of Section 139 (7) costs were incurred by the National Treasury.
2. No further statement is necessary. The response to PQ 137 to the NCOP further expatiated on the benefits of deploying Administrators to lead the implementation of the intervention guided by the ToRs with the support of the municipal Council to achieve the set objectives of this course.
End.