Kgetlengrivier Local Municipality has welcomed the expansion of the Terms of Reference of the Provincial Executive Representative (PER), describing the intervention as a significant step towards restoring financial stability, strengthening governance and accelerating service delivery to local communities.
Briefing the Kgetlengrivier Local Municipality Council on the revised Terms of Reference of the PER, MEC Kenetswe Mosenogi, in collaboration with the Department of Cooperative Governance and Traditional Affairs (COGTA), explained that this follows the approval of the Provincial Executive Council and forms part of the provincial government’s intervention in terms of section 139(5) of the Constitution of the Republic of South Africa.
She said this is read together with the relevant provisions of the Municipal Finance Management Act (MFMA), to facilitate the implementation of the municipality's mandatory Financial Recovery Plan.
The intervention seeks to restore the municipality to financial sustainability, strengthen governance and accountability, improve institutional capacity and ensure the delivery of quality services to residents.
“The expanded Terms of Reference respond to persistent financial and governance challenges experienced by the municipality, including the continued adoption of unfunded budgets, deteriorating cash flow and liquidity constraints, escalating debt owed to bulk service providers such as Magalies Water and Eskom, weaknesses in revenue collection and financial management, as well as broader governance and institutional inefficiencies,” said MEC Mosenogi.
Under the revised mandate, the MEC expressed that the PER will provide strategic leadership and oversight over the implementation of the Financial Recovery Plan.
Supported by a multidisciplinary team of experts, the PER will oversee financial management, governance reforms, institutional strengthening and service delivery improvements to ensure the municipality restores financial discipline, accountability and compliance with legislative requirements.
MEC Mosenogi emphasised that the intervention is not intended to punish the municipality but to provide the support and oversight necessary to restore sound financial management and rebuild public confidence.
“The success of this intervention will depend on the collective commitment and cooperation of Council, municipal administration and all stakeholders in implementing the Financial Recovery Plan,” said MEC Mosenogi.
Council committed itself to supporting the implementation of the Financial Recovery Plan, working closely with the Provincial Executive Representative and ensuring governance stability throughout the intervention period.
The North West Provincial Treasury reaffirmed its commitment to working collaboratively with municipalities and the Department of Cooperative Governance and Traditional Affairs to build financially sustainable, capable and accountable local government institutions that are responsive to the needs of communities.
The department further reiterated that the successful implementation of the Financial Recovery Plan is expected to position Kgetlengrivier Local Municipality as a financially sustainable, compliant and well-governed institution capable of delivering reliable and quality services to its residents.
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