The Provincial government invoked Section 139 I (b) of the Constitution of South Africa (Act 108 of 1996) on 3^rd September 2003. Reasons for intervention which the Council agreed to, were stated as follows :

• Failure of the Municipality to perform its constitutional obligations;
• Failure to address service delivery backlogs encountered by the municipality;
• Municipality could not raise sufficient revenue and maintain a proper cashflow.

The Mafikeng Local Municipality agreed with the intervention based on the approach of co-operate governance and also the empowerment of the municipality to end up standing on its own after the end of the intervention.

Subsequently, the Provincial Executive decided to intensify the intervention on the 10^th March 2004 believing that it did not bear the desired effects that inevitably, more funds were required to achieve the intended results. It was thus the intention of EXCO to find the money to implement the assumption of the responsibility, of which R30m was committed.

(i) grass cutting has been achieved;

(ii) 36 street names has been replaced;

(m) potholes have been repaired in 14 streets;

(iv) streets lights in Bray road has been repaired;

(v) The Consultants have produced guidelines and draft policies and procedures on Finance related matters, the officials have already been workshoped. A date for Councillors is still to be determined;

(vi) The Change Management workshop was successfully held with the attendance of Officials and Councillors for 2. days;

Council has identified faulty Botshelo Water bulk meters that will ultimately improve our unaccounted for water figure by at least 10% annually, representing a saving of close to Rl,4 m.

(i) Mmabatho Community Library - agreement signed and out on tender.

(ii) Mmabatho Tennis Club house - phase I completed.

(iii) Mmabatho Tennis Club - phase 2 business plan completed and submitted for approval.

(;) Ward 9, Montshiwa and Imperial Reserve – out on tender;

(i'l) Street light repair vehicle acquired, repaired ± 1000 lights from own resources.

Reseal Zeerust Road bypass - Public Works

Reseal Lo+lhakane road - Public Works

(iii) Major potholes repairs - own resources

(iv) 600 metres gravel road - Motllhabeng using own resources

(v) 300 metres road in Lonely Park re-graveled using own resources

Eskorn through liaison with the municipality is electrifying Dihatshwane, Makgabana, Matshepe, Manawana, Rooigrond, Seweding extension. Tsetse extension, Matihonyane to be financed by the municipality.

Projects for 2005/6 already authorized by Eskorn :

Mabuditshwana, Miga, Matsupola, Tiapeng and Motsumurwana, facilitation for additional projects - ongoing.

Turnaround strategy prepared by Council before Sec 139 intervention, was accepted by Sec 139 as is only to do costing and implementation framework not finalized to date by Sec 139 Consultants.

Internal Audit function outsourced to CDM – more effective, cost savings on operational as well as audit fees for council

Implemented interest incentive scheme - reaping the benefits through improved debt collection.

Started formal process of addressing consumer queries which also lead to improved revenue collection Budget and IDP was finalized ahead of target with greater internal and external public participation.

In the manual for the application of Section 139 of the constitution (Provincial Supervision) under the heading FOREWORD - on page 5 last sentence of paragraph 5 it is stated that "The use of section 139 is circumscribed by rules and principles and must take place in the spirit of

sound intergovernmental relations".

In the same document Chapter 2 - first paragraph "The principles of co-operative government require from The provincial executive that it exercises its powers, including its powers to intervene, in a manner that does not encroach on the institutional integrity of Local Government (Section 41 (1) (g) of the Constitution)’

Our humble submission is that the current intervention is

not in sync with the above stated objectives.

• Only Rl. 3m was received of the R30m that was committed by the Provincial government;
• To date the outstanding debts owed by Provincial Departments are still outstanding;
• A letter has been written to the Executive Mayor by MEC Mr P Vilakazi that "Mr J Motlogelwa has been appointed as an Implementing Agent as well as an Acting Municipal Manager with an advice that the " municipality must endorse that decision". Copy attached, (current municipal manager on suspension).

(i) Intervention has never been reviewed;

(ii) The proposed extension of duration of the intervention will be unconstitutional.;

(iii) Implementing Agent is an Administrator of a special type which convert the intervention from 139 (1) (b) to 139(l)(c);

(iv) The same implementing Agent is a municipal manager of another municipality from another municipal district;

(v) Tension and confusion caused by assumption of functions and powers of the Executive Mayor (Act 117 of 1998 sec 56);

(vi') The principles and intention of intergovernmental relations not adhered to;

(vii) The Department of Developmental Local government and Housing has allowed the debt by North West Housing Corporation to accumulate by intervening every time council wants to act. At the moment the debt stands at R11m.

(viii) Council is not receiving any subsidy on fire brigade service as is the case with other municipalities. Fire brigade service consumes 13 "/o of assessment rates revenue, which translates into R6,6m. This function belong to District Municipality.

(i) The remaining period of Section 139 (1) (b) be allowed to run to conclusion;

(ii) That the assumption of functions and powers of the Executive Mayor be lifted;

(iii) Intervention be reviewed on a monthly basis so as to ensure maximization of its impact;

(vi) The Provincial Departments owing the municipality be urged to settle their accounts by the 15th August 2004 and thereafter make payments on a monthly basis;

(v). That the decision of EXCO to avail R30m be executed urgently.