The Eastern Cape Executive Council has placed the cash strapped Amathole District Municipality under administration.
The EXCO invoked Section 139 (5) (a) of the Constitution to oversee the affairs of the municipality.
Two weeks ago, the municipality announced that it won’t be able to pay the salaries of its employees, councillors and traditional leaders for four months.
It has approached the national government requesting R180 million to pay staff salaries.
Last week, the South African Municipal Workers’ Union (SAMWU) called for the municipality to be placed under administration.
In the video below, Samwu calls for the precinct to be placed under administration:
Briefing the media, provincial government spokesperson Mvusiwekhaya Sicwetsha says, a team led by Cooperative Governance and Traditional Affairs (Cogta) MEC Xolile Nqatha will monitor the implementation of the municipality’s financial recovery plan.
“A technical team from both the national and the provincial government will be sent to support the implementation of the financial recovery plan aimed at securing the municipality’s ability to meet its obligations to provide basic services or its financial commitments, as provided for in Section 139 (5) (a) of the Constitution of our country.”
“A monthly report of the implementation of this constitutional intervention will be submitted to the Executive Council of the Provincial government by the Cooperative Governance and Traditional Affairs MEC on a regular basis,” explains Sicwetsha.
Amathole Municipality to pay workers’ salaries
A week ago, the municipality withdrew its January 7 circular to withhold payment of salaries to 1 641 municipal workers.
In a circular, the district said it is making a collective effort to improve its cash flow position.
In the video below, the Mayor of the Amathole District Municipality, Khanyile Maneli says he has sought assistance from the national and provincial government as the municipality is in millions of rands worth of debt: