ATC100519: Report on Dissolution of Naledi Local Municipality

NCOP Economic and Business Development



1.         Introduction and Background

1.1        The Select Committee on Co-operative Governance and Traditional Affairs having considered the dissolution notice on the 14 May 2010 and report on the intervention notice invoked in terms of section 139 (1)(c) of the Constitution at Naledi Local Municipality by the Free State Provincial Executive Council (PEC), reports as follows:


1.2        According to section 139(1)(c) of the Constitution, when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of that obligation, including dissolving the Municipal Council and appointing an Administrator until a newly elected Municipal Council has been declared elected.


1.3        The Constitution provides that the dissolution takes effect unless the NCOP or the Minister set it aside. In other words, the Constitution provides for a 14-day window period within which the national Minister and the NCOP have the opportunity to set aside the dissolution.


2.         Problems Identified by the PEC at the Municipality

2.1        The rationale for the dissolution of Naledi Local Municipality is based on the major problems identified by the PEC related to the following:

2.1.1     Assassination of the Mayor on 3 May 2010.

2.1.2     Attempted murder of the Municipal Manager on 4 May 2010.

2.1.3     Division amongst Municipal Councillors and their inability to convene Council meetings.

2.1.4     Most reports generated by the administration could not be assessed and finalised by Council or signed off by the Mayor, to enable the administration to function effectively.

2.1.5     The draft IDP, Budget and Turn-Around Strategy was not effectively consulted on with the community, owing to the Council’s poor public consultation processes.

2.1.6     The CFO and Manager for Technical Services were suspended by the Municipal Manager without the ratification of the Council.

2.1.7     Poor water management has led to the Municipality being indebted to the Water Board.

2.1.7     The Municipality has received disclaimers for the past three years from the Auditor-General.


3.         Committee Observations and Opinion


3.1        The Committee has observed that the Provincial Department has in the past years provided support to the Municipality in terms of section 154(1) of the Constitution. Section 154 of the Act mandates national and provincial government to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions. However, the Naledi LocalMunicipality demonstrated its unwillingness to fulfil its executive obligations owing to the administrative and financial mismanagement, and current political instability which was prevailing in the Municipality.


3.2        Based on the reasons for dissolution provided by the Free State MEC for Co-operative Governance, Traditional Affairs and Human Settlements, Mr M Zwane, the Committee is of the opinion that the dissolution of Naledi Local Municipal is warranted by the Municipal Council’s conduct, which is the cause of the continued failure to comply with an executive obligation.


3.3        Furthermore, the Committee is of the opinion that for the Free State Provincial Executive to intervene at Naledi Local Municipality, it is an integral part of the institutional framework for developmental local government. It is a necessary corrective measure when a municipality fails to govern and thus jeopardises the enterprise of development. It is also an aspect of intergovernmental relations and, as such, it must be exercised within the spirit of co-operative government as outlined in Chapter 3 of the Constitution.

3.4        The Select Committee on Co-operative Governance and Traditional Affairs, in co-operation with the relevant Portfolio Committee in the Free State Provincial Legislature, would conduct an oversight visit to interact with internal and external stakeholders of the Naledi LocalMunicipality.    


4.         Recommendations


4.1        The Select Committee on Co-operative Governance and Traditional Affairs recommends as follows:   


4.1.1          The NCOP approves the intervention as issued by the Free State Provincial Executive Council in terms of section 139 (1)(c) of the Constitution.


4.1.2          The Free State MEC for Co-operative Governance, Traditional Affairs and Human Settlements should table progress reports to the NCOP and the Provincial Legislature on the status of by-elections to be held at Naledi Local Municipality.


4.1.3          The Minister for Co-operative Governance and Traditional Affairs should approach the Hawks to pursue criminal investigation in all cases of financial irregularities and fraud in Naledi Local Municipality, as a matter of urgency, and a report be forwarded to the NCOP in this regard.



Report to be considered.


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