Madibeng: As part of government’s commitment to taking decisive action where necessary to restore financial stability, strengthen governance and safeguard service delivery in municipalities, MECs for North West Provincial Treasury and Cooperative Governance and Traditional Affairs, today presented the revised Terms of Reference for the Provincial Executive Representative (PER) attached to Madibeng Local Municipality. This was presented during a special council meeting which was convened by Madibeng Local Municipality. The council was also updated on the implementation approach of the revised strategy.
The council engagement forms part of a series of special council meetings with municipalities currently implementing mandatory Financial Recovery Plans (FRPs) in terms of Section 139(5)(c) of the Constitution, read together with the Municipal Finance Management Act (MFMA).
Addressing the council, MEC Mosenogi said this move is reaffirming the Provincial Government’s commitment to restoring municipal financial sustainability, strengthening governance, and improving service delivery. Mosenogi explained that the revised implementation approach prioritises high-impact, non-negotiable recovery interventions that address the underlying causes of municipal financial distress while supporting municipalities to transition from financial rescue towards sustainable governance and improved service delivery.
MEC Mosenogi further outlined the revised Terms of Reference approved by the Provincial Executive Council for the Provincial Executive Representative, whose mandate is to oversee the implementation of the mandatory Financial Recovery Plan and ensure that municipalities restore financial discipline, legislative compliance and sound governance.
“The intervention was necessitated by persistent financial and governance challenges facing the municipality, including the continued adoption of unfunded budgets, deteriorating cash flow and liquidity constraints, escalating debt owed to bulk service providers, weaknesses in revenue collection and financial management, as well as governance and institutional inefficiencies. This intervention is not punitive but corrective. It is intended to restore financial stability, strengthen governance and accountability, and ultimately improve the quality of services delivered to our communities. Achieving these objectives requires the full cooperation and commitment of both Council and municipal administration, said MEC Mosenogi”.
MEC Oageng Molapisi explained that the revised Terms of Reference empower the Provincial Executive Representative to provide strategic leadership and oversight over the implementation of the Financial Recovery Plan, supported by a multidisciplinary team of experts provided by CoGTA.
“The PER will be provided with extensive support to oversee governance reforms, strengthen financial management and expenditure controls, monitor municipal finances, ensure compliance with the Municipal Finance Management Act, and coordinate the implementation of the Financial Recovery Plan, said Molapisi.
Councillors were also briefed on the revised reporting, monitoring and accountability arrangements introduced through the updated Terms of Reference, which are intended to strengthen oversight, improve implementation and enhance accountability throughout the intervention.
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Issued by North West Provincial Treasury. For more information contact: Media Liaison Officer Lesedi Makhubela 062 103 2798 and Head of Communication Ms. Kesalopa Gill on 0795486352.