Provincial government intervenes in five distressed municipalities during last day of EXCO

Mpumalanga Premier, Refilwe Mtshweni is chairing the last day of EXCO Lekgotla in Skukuza at the Kruger National Park which is so attended by local government.

Premier Mtshweni has announced that the provincial government has intervened with Section 139 (1) (a) of the Municipal Financial Management Act (MFMA) in five distressed municipalities which are Emalahleni, Thaba Chweu, Govan Mbeki, Lekwa and Msukaligwa.

These municipalities were found to be defaulting on payments of their creditors, their actual current expenditure was also found to be exceeding their actual current revenue, and they also incurred operating deficit in most recent financial years.

This recurring failure has impacted on their ability to procure goods and services as well as providing the much-needed services to communities.

The municipalities are not necessarily placed under administration, but are being provided with support by the provincial government.

Task teams led by the Provincial Treasury and COGTA encompassing specialists in elements of the financial management, have already been dispatched and are currently working tirelessly to develop and implement financial recovery plans in these municipalities.

The provincial government will continuously monitor the implementation of the recovery plan, assist the municipalities to turn around their financial health and viability.

Information supplied.