The Democratic Alliance (DA) rejects the decision by North West Finance MEC, Motlalepula Rosho, not to accede to our demand to place the Maquassi Hills Local Municipality under Section 139 (5)(a) and (c) administration. This would have empowered the Provincial Treasury to take control of the beleaguered municipality’s finances to stabilise the dire situation and identify and implement a financial recovery plan within a stipulated timeframe in order to ensure that creditors are paid and that services are delivered.

This follows an engagement with members of the Maquassi Hills community on 27 May 2022 who gave the DA a mandate to proceed with a demand to call for the Section 139 (5) intervention.

In her response to our request, MEC Rosho acknowledges that Maquassi Hills meets all the criteria for a Section 139 (5) (a) and (c) financial intervention but would not intervene with the legal provisions of the Law, and rather opt to “work together” with the municipality to assist with a financial recovery plan in collaboration with National Treasury. See here.

MEC Rosho indicates in her response that she will work with Maquassi Hills under Section 138 and 140 of the Municipal Finance Management Act (MFMA) to stabilise the financial situation of the municipality, but these two sections merely set the criteria for identifying whether a municipality is under distress. It has no legislative power to enforce a financial recovery plan.

This is nothing but window-dressing in an attempt at stabilising the financial mess at Maquassi Hills. In ANC speak, “working together” means absolutely nothing. The ANC cannot work together with anyone, even themselves.

It is evident that ANC factional dynamics in the run-up to the ANC’s elective conference are at play in Maquassi. It is alleged that MEC Rosho finds herself in the same ANC faction as Maquassi Mayor, Cllr Mzwandile Feliti, and it appears that the decision not to place the municipality under administration was considered through this ANC factional lens, even though MEC Rosho acknowledges the municipality finds itself under financial distress.

This is exactly how the ANC place their selfish party-political interests above the interests of the people, of good governance, and of service delivery.

The DA will now take this matter directly to National Treasury requesting them to place Maquassi Hills under Section 139(7) of the Constitution, read together with Section 150 of the Municipal Finance Management Act (MFMA) because it is now quite evident that Provincial Treasure does not want to act as they are constitutionally mandated to do. See here.

Maquassi Hills is in severe financial distress. It owes Sedibeng Water more than R254 million, Eskom R33 million, and holds a creditors book to the value of more than R60 million. The municipality’s salary bill exceeds funding by R1 million a month, totaling R7,8 million for 280 salaried officials. Last month, the municipality failed to pay salaries on time.

The DA will continue to fight for the people of Maquassi Hills in our pursuit of accountable governance and service delivery.

 

Issued by Cllr Don van Zyl - DA Constituency Head: Maquassi Hills and Lekwa-Teemane Local Municipalities