THE Free State provincial government has finally been forced to intervene in the troubled and cash-strapped ANC-run Matjhabeng local municipality following a scathing court ruling forcing the state to take action amid worsening service delivery.
Earlier this year, the DA launched an application to have the municipality declared in serious and persistent material breach of its duties to provide services in a sustainable manner, failure to create a safe and healthy environment and structure and manage its administration, budgeting and planning processes to prioritise residents’ needs.
In its application, the DA cited Free State premier Maqueen Letsoha-Mathae, her provincial executive, cooperative governance and traditional affairs (Cogta) and human settlements MEC Saki Mokoena, Cogta minister Velenkosini Hlabisa and the municipality, who all indicated they intended to oppose the matter.
President Cyril Ramaphosa and his national executive initially filed notices to oppose the DA’s application but failed to file answering affidavits while the Free State provincial legislature, the National Council of Provinces (NCOP) and National Treasury filed notices to abide with the high court’s decision.
In her judgment handed down on October 22, Free State High Court Judge Ilse van Rhyn declared that the Matjhabeng local municipality has breached the Constitution by failing to strive, within its financial and administrative capacity to, ensure the provision of services to its community in a sustainable manner, promote social and economic development as well as a safe and healthy environment and that its conduct is invalid to the extent of the identified inconsistencies.
Judge van Rhyn also declared that the municipality as a result of a crisis in its financial affairs is in serious or persistent material breach of its obligations to provide basic services and to meet its financial commitments.
As of March 2024, the municipality owed Eskom almost R5.9 billion while its debt to the Vaal Central Water Board is nearly R6bn, according to court papers.
The municipality has also persistently failed to pay its employees salaries and benefits due to them.
The judge declared that Letsoha-Mathae, her executive council, Ramaphosa and his national executive failed to comply with the duties to intervene in Matjhabeng in terms of the Constitution and that their conduct is invalid to the extent of the inconsistencies.
Letsoha-Mathae, her executive council including Mokoena were ordered to notify the NCOP within seven days of the judgment that they were intervening in Matjhabeng or national government would have to step in should they fail to do so.
The provincial government must also prepare a financial recovery plan for the municipality including complying with its duties to make requests to the National Treasury’s municipal financial recovery service and consult with acting mayor Hlobohang Mokhomo in terms of the Municipal Finance Management Act and within six months of Judge van Rhyn’s order file a copy of the financial recovery plan with the court.
The judge also ruled that should the municipality not approve legislative measures including a budget or any revenue-raising measures necessary to give effect to the recovery plan its council must be dissolved and an administrator appointed until a newly-elected council has been declared elected, and approve a temporary budget or revenue-raising measures or any other measures giving effect to the recovery plan to provide for the municipality’s continued functioning.
The administrator will assume responsibility for the implementation of the recovery plan to the extent that the municipality cannot or does not otherwise implement it.
In complying with the judgment, Mokoena has already informed Mokhomo that at its extra-ordinary meeting on October 30 the provincial executive council resolved to invoke section of the constitution as an intervention in the Matjhabeng local municipality.
The Constitution makes provision for provincial government intervention in municipalities if as a result of a financial crisis there is a serious or persistent material breach of obligations to provide basic services or to meet its financial commitments or admits that it is unable to meet its obligations or financial commitments.
In cases where the provincial executive does not dissolve a council it assumes responsibility for the implementation of the financial recovery plan to the extent that the municipality cannot or does not otherwise implement the recovery plan.
Next month, Thanduxolo Khalipha, the controversial mayor of Matjhabeng, which includes Welkom, Virginia, Odendaalsrus, Hennenman, Ventersburg and Allanridge, is expected back at the Odendaalsrus Magistrates’ Court for sentencing after being convicted last Friday of assault and crimen injuria for beating up and insulting his bodyguards, Sphamandla Msomi and Frank Moreroa, at a community meeting in February.
According to the National Prosecuting Authority, Khalipha physically assaulted his protectors and made derogatory remarks after they tried to intervene and escort him out of the venue as residents became rowdy at the meeting.
They later opened cases of assault and crimen injuria against the embattled mayor, who was forced to step aside by the ANC in July and placed on 30 days leave by the Matjhabeng council in September.
loyiso.sidimba@inl.co.za