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Sixteen out of the 39 municipalities in the Eastern Cape are considered to be “financially unstable.”
This was revealed by the MEC of Cooperative Governance and Traditional Affairs, Zolile Williams, in response to a questions from the Democratic Alliance in the Bhisho Legislature.
According to the MEC, these municipalities were identified based on their respective performance on four pillars; sustainability, financial health, governance, service delivery and institutional stability.
Williams said five municipalities have been identified for intervention in terms of section 139(5) of the Constitution and these are Amathole, Chris Hani and OR Tambo District Municipalities as well as Makana and Walter Sisulu Local Municipalities.
The Cogta MEC noted that only two municipalities, ADM and Makana, have approved financial recovery plans and “workstream champions” have been appointed.
MEC Williams said National Treasury had appointed “advisors” to the two other municipalities to develop financial recovery plans, but the June deadline had been missed.
Commenting, DA MPL, Dr Vicky Knoetze, said years of mismanagement, cadre deployment, and disinvestment by provincial government to maintain and improve small towns have placed them on a path of devastation.
She said urgent steps must be taken to rescue “our municipalities and small towns left to fend for themselves as they fall into complete financial distress.”
“Small towns such as Makhanda, Cradock, Komani and Graaff-Reinet, Tsitsikamma, and the Langkloof have for years been the crown jewels of the Eastern Cape. Now, they are battling to keep the lights on due to years of mismanagement and neglect, said the Cogta Shadow MEC
Knoetze said they were calling on the Eastern Cape provincial government, specifically the COGTA MEC and Premier Oscar Mabuyane, to urgently intervene by assisting these municipalities in terms of section 154 of the Constitution.
"We need urgent intervention if we are to rescue this province from a total collapse of service delivery."
