National Treasury serves notice on Moretele Local Municipality, putting all service delivery at risk over the festive season

22 November 2019

National Treasury served notice to the Moretele Local Municipality in terms of section 216 (2) of the Constitution, that the next payment tranche of its equitable share funding will be withheld from 2 December 2019 due to Council adopting an unfunded budget for the 2019/2020 financial year. See letter here.

Withholding the equitable share funding poses a financial risk and will consequently render the entire municipality unable to pay suppliers, contractors, salaries and prevent the procurement of consumables, and worst of all, see a complete halt to basic service delivery as erratic this it currently is.

This will have a severe negative impact on the quality of life of residents and will place the livelihoods at risk, since businesses will be constrained in offering services and trade.

Council was informed that they are at risk of having the equitable share funding withheld and given due notice to correct the adopted budget in line with section 18 of the Municipal Finance Management Act (MFMA).

The Council discussed the matter during a Special Council meeting on 08 November 2019. The matter was brought back on 14 November 2019 when it was approved after the CFO Serra Vilane and the Acting Municipal Manager Mr Thabo Makwela claimed that all was above board.

The DA today engaged with the Mayor Andries Monaheng to call a meeting of the Council Troika plus the Acting MM and CFO to discuss the notice as a matter of urgency, and resolve to immediately bring the budget in line with the MFMA. The Mayor was reluctant and said that he will deal with it.

Quite frankly the Mayor does not have the authority to supersede legislative and constitutional requirements, and is thus acting completely out of line. The DA calls for an urgent Council meeting to be convened so that we can bring the budget in line with the MFMA.

The DA will continue to push for the adoption of a properly funded budget to ensure that the people of Moretele continue to enjoy access to service delivery.

Issued by Solly Magalefa, DA Caucus Leader: Moretele Local Municipality, 22 November 2019