The North West Provincial Treasury, together with the Department of Cooperative Governance and Traditional Affairs (COGTA) convened an intergovernmental stakeholder engagement to strengthen support for nine municipalities currently under mandatory intervention, culminating in the signing of a collaboration commitment.
This engagement, held in Klersdorp, brought together Dr Kenneth Kaunda, Dr Segomotsi Mompati, Dr Ngaka Modiri Molema District Municipalities, and key stakeholders, including South African Local Government Association (SALGA), ESKOM, Department of Water and Sanitation (DWS), Municipal Infrastructure Support Agent (MISA), and Midvaal Water Board.
In line with its theme, “Strengthening Intergovernmental and the Implementation of Financial Recovery Plan and service delivery,” the engagement aims to shift municipalities from prolonged financial distress to a more stable and sustainable fiscal position through the Revised Financial Recovery Plan (FRP) strategy.
Delegates discussed the revised mandatory interventions and the implementation of Financial Recovery Plans across the nine municipalities under intervention. Stakeholders signed an intergovernmental commitment binding them to a single, structured approach to municipal recovery.
The commitment gives effect to the framework of co-operative governance set out in Chapter 3 of the Constitution and is expected to result in a municipality that is functional in all respects including governance, financial management, institutional performance, and service delivery. It supports mandatory interventions in terms of Section 139(5)(a) and (c) of the Constitution, read with the Municipal Finance Management Act (MFMA) of 2003.
Each signatory contributes within its legislative mandate. Provincial Treasury will provide budget support, revenue enhancement strategies and financial performance monitoring. Eskom and Midvaal Water Company will support improved billing, reduced losses and debt restructuring. MISA will deploy technical specialists, while the Department of Water and Sanitation will support water services planning and infrastructure grant applications.
Addressing the delegates, MEC Mosenogi said the Provincial Treasury would now work with all signatories to translate the commitment into coordinated support on the ground, with progress tracked through the agreed monitoring mechanisms.
"This commitment affirms our collective accountability to restore the financial health, functionality and service delivery capacity of municipalities under intervention," said the MEC Keneetswe Mosenogi. "Recovery is only possible when every sphere of government and every partner institution pulls in the same direction.
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