REPORT OF THE SELECT COMMITTEE ON
CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE DISSOLUTION OF
1. Introduction
and Background
1.1 The
Select Committee on Co-operative Governance and Traditional Affairs having considered the dissolution notice on the 14 May 2010 and
report on the intervention notice invoked in terms of section 139 (1)(c) of the
Constitution at Naledi Local Municipality by the Free State Provincial
Executive Council (PEC), reports as follows:
1.2 According to
section 139(1)(c) of the Constitution, when a municipality cannot or does not
fulfil an executive obligation in terms of the Constitution or legislation, the
relevant provincial executive may intervene by taking any appropriate steps to
ensure the fulfilment of that obligation, including dissolving the Municipal
Council and appointing an Administrator until a newly elected Municipal Council
has been declared elected.
1.3 The
Constitution provides that the dissolution takes effect unless the NCOP or the
Minister set it aside. In other words, the Constitution provides for a 14-day
window period within which the national Minister and the NCOP have the
opportunity to set aside the dissolution.
2. Problems
Identified by the PEC at the Municipality
2.1 The rationale for the dissolution of
2.1.1 Assassination
of the Mayor on 3 May 2010.
2.1.2 Attempted
murder of the Municipal Manager on 4 May 2010.
2.1.3 Division amongst Municipal Councillors and their inability to
convene Council meetings.
2.1.4 Most reports generated by the administration could not be
assessed and finalised by Council or signed off by the Mayor, to enable the
administration to function effectively.
2.1.5 The draft IDP, Budget and Turn-Around Strategy was not
effectively consulted on with the community, owing to the Council’s poor public
consultation processes.
2.1.6 The CFO and Manager for Technical Services were suspended by the
Municipal Manager without the ratification of the Council.
2.1.7 Poor water management has led to the Municipality being indebted
to the Water Board.
2.1.7 The Municipality has received disclaimers for the past three
years from the Auditor-General.
3. Committee Observations
and Opinion
3.1 The Committee has observed that the
Provincial Department has in the past
years provided support to the Municipality in terms of section 154(1) of the
Constitution. Section 154 of the Act mandates national and provincial
government to support and strengthen the capacity of municipalities to manage
their own affairs, to exercise their powers and to perform their functions.
However, the
3.2 Based on the reasons for dissolution
provided by the Free State MEC for Co-operative Governance, Traditional Affairs
and Human Settlements, Mr M Zwane, the Committee is of the opinion that the dissolution of Naledi Local Municipal
is warranted by the Municipal Council’s conduct, which is the cause of the
continued failure to comply with an executive obligation.
3.3 Furthermore,
the Committee is of the opinion that for the
Free State Provincial Executive to intervene at
3.4 The Select Committee on Co-operative
Governance and Traditional Affairs, in co-operation with the relevant Portfolio
Committee in the Free State Provincial Legislature, would conduct an oversight
visit to interact with internal and external stakeholders of the
4. Recommendations
4.1 The Select Committee on Co-operative
Governance and Traditional Affairs recommends as follows:
4.1.1
The NCOP approves the intervention as issued by the Free State Provincial
Executive Council in terms of section 139 (1)(c) of the Constitution.
4.1.2
The Free State MEC for Co-operative Governance, Traditional Affairs and
Human Settlements should table progress reports to the NCOP and the Provincial
Legislature on the status of by-elections to be
held at
4.1.3
The Minister for Co-operative Governance and Traditional Affairs should
approach the Hawks to pursue criminal investigation in all cases of financial
irregularities and fraud in
Report to be considered.