Mangaung Intervention in Terms of Section 139 (5) (a) & (c)
The Deputy Minister of Finance, Dr. David Masondo, today conducted an oversight visit to the Free State Province to engage with the provincial executive on the recently initiated intervention in the Mangaung Metropolitan Municipality.
Deputy Minister Masondo was accompanied by Cooperative Governance and Traditional Affairs (COGTA) Deputy Minister Mr. Parks Tau.
Mangaung Municipality’s finances have deteriorated substantially since 2018/19, leading to the adoption of a financial recovery plan for the municipal council, as jointly agreed between the national department of COGTA and National Treasury.
Nevertheless, poor governance and budget management in the municipality, as well as low revenue collection, led to the ineffectiveness of the financial recovery plan and a cash-flow crisis during the 2019/20 financial year.
Deputy Minister Masondo wrote to the provincial executive of the Free State Province on 11 December 2019, recommending that an intervention in terms of Section 139 (5) of the Constitution, be implemented in Mangaung Metro.
Subsequent to this, the Free State provincial executive council (EXCO) resolved on 19 December 2019 to invoke Section 139 (5) (a) and (c) of the Constitution, and to appoint an Intervention Team composed of provincial and national government officials, to assist with the development and implementation of a mandatory Financial Recovery Plan in the metro. Read more