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ActionSA calls for urgent intervention in Emfuleni municipality crisis
ActionSA calls for urgent intervention in Emfuleni municipality crisis

IOL News

time26-05-2025

  • Politics
  • IOL News

ActionSA calls for urgent intervention in Emfuleni municipality crisis

ActionSA is demanding that the Gauteng Premier place Emfuleni Local Municipality under mandatory administration due to years of financial mismanagement and service delivery failures that have led to a crisis. Image: Itumeleng English Independent Newspapers ActionSA has ramped up pressure on Gauteng Premier Panyaza Lesufi and Finance MEC Jacob Mamabolo, demanding that Emfuleni Local Municipality be placed under mandatory administration. The party said years of financial mismanagement, collapsing infrastructure, and failed service delivery have pushed the municipality beyond the point of recovery without urgent national intervention. "It is now imperative that the Gauteng Provincial Government invoke Section 139(5) of the Constitution and place Emfuleni Local Municipality under mandatory administration, with the full oversight of National Treasury." ActionSA Gauteng provincial chairperson, Funzi Ngobeni MPL, has criticised the ongoing oversight failures in Emfuleni, warning that years of ineffective and incomplete interventions under Section 139(1)(b) have allowed the municipality to slide into what he described as a 'full-blown crisis.' Ngobeni stressed that Emfuleni's dire financial state is undeniable, citing the municipality's R7.1 billion debt to Eskom and mounting arrears with Rand Water as key indicators of its insolvency. He added that massive service delivery failures, including 62% water losses and 22% electricity losses — amounting to over R750 million in annual lost revenue — have left basic services out of reach for many residents. 'Ongoing sewer spillages, neglected infrastructure, and collapsed waste management systems have turned essential services into a luxury most communities can no longer count on,' Ngobeni added. Ngobeni further pointed to the ongoing sanitation crisis at the Ramaphosa informal settlement as a glaring example of Emfuleni's collapse. 'The fact that portable toilets have gone unserviced for more than four months is not just unacceptable — it should be the final straw…this level of neglect underscores why urgent intervention through Section 139(5) is no longer optional but absolutely necessary. 'Despite Premier Lesufi's belated instruction to the Gauteng Human Settlements Department to resolve the matter, it is clear that without intentional, decisive provincial intervention, residents will continue to suffer. Emfuleni's failure to provide basic sanitation is not confined to one settlement – it is a systemic, recurring feature of a municipality in collapse,' he said. Previously placed under administration due to chronic service delivery failures, Emfuleni Local Municipality remains in disarray. Ngobeni has slammed the earlier Section 139(1)(b) intervention, terminated in 2022, as a 'disastrous failure.' The party argued that the measure merely offered a façade of oversight while allowing Emfuleni's political leadership to retain control over the budget and continue with unchecked, irresponsible spending. "The situation has now escalated beyond discretionary oversight. ActionSA, therefore, supports the immediate implementation of a financial recovery plan in terms of Section 139(5), which would transfer financial control to National Treasury and impose mandatory reforms," he said. Ngobeni stated that ActionSA has formally submitted a proposal to the Gauteng Legislature's COGTA Committee, urging the Portfolio Committee and Premier Panyaza Lesufi to act swiftly. He said the municipality's dire financial state requires immediate fiscal control by the National Treasury to enforce a funded and credible budget capable of addressing years of financial mismanagement. 'An immediate fiscal control by National Treasury to enforce a funded and credible budget, aggressive debt recovery aligned with Eskom's debt relief framework, and prioritised infrastructure restoration in water, electricity, and sanitation,' said Ngobeni. He further added that stabilising the municipality's leadership is also crucial to turning things around. 'Appointing a permanent Municipal Manager and Chief Financial Officer without delay is vital to restoring governance and accountability in Emfuleni.' ActionSA is not the only political party placing pressure on the embattled Emfuleni Local Municipality. As previously reported by The Star, the Democratic Alliance (DA) has also taken decisive action by referring the municipality to the South African Human Rights Commission (SAHRC). The DA is calling for a full investigation, citing long-standing and severe service delivery failures. According to the party, these failures have subjected residents to inhumane living conditions, effectively violating their constitutional rights to basic services such as clean water, adequate sanitation, and a safe and healthy environment. The Star [email protected] ActionSA is demanding that the Gauteng Premier place Emfuleni Local Municipality under mandatory administration due to years of financial mismanagement and service delivery failures that have led to a crisis. Image: File

Matjhabeng's legal bills under fire amid court-ordered provincial intervention
Matjhabeng's legal bills under fire amid court-ordered provincial intervention

News24

time12-05-2025

  • Politics
  • News24

Matjhabeng's legal bills under fire amid court-ordered provincial intervention

This pronouncement from the court revealed that the municipality itself did not contest the fact that it was failing to fulfil its constitutional duties, leading to the DA's attempt to invoke Section 139. A legal status report revealed that although the municipality adopted various litigation strategies to control legal costs since 2015, implementation was erratic and largely ineffective City Press had previously reported that Matjhabeng was grappling with a runaway legal bill amounting to R134 million in claims As the courts affirm that the Matjhabeng Municipality should be placed under provincial administration due to its failure to uphold constitutional obligations, serious concerns are mounting over the municipality's excessive legal spending — diverting crucial funds away from essential service delivery. The Free State High Court in Bloemfontein recently upheld its earlier ruling, dismissing Matjhabeng Municipality's application for leave to appeal in a case brought by the DA. The legal action sought to invoke Section 139 of the Constitution, paving the way for provincial intervention in the municipality's affairs. Section 139 of the SA constitution outlines the powers of the provincial executive to intervene in a municipality that fails to fulfil its constitutional or legislative obligations. This intervention can include providing support, appointing administrators, or even dissolving the council if necessary. National legislation further regulates the processes involved. The DA had argued, and the court agreed, that Matjhabeng was in serious and persistent breach of its constitutional duties to provide basic services and manage its finances effectively, as required by Sections 152(2) and 153(a) of the Constitution. Court ruling and failed appeal In the initial judgment, delivered on 30 May 2024, and referenced in the application for leave to appeal by the Matjhabeng municipality, which was heard on 7 March 2025, Judge Van Rhyn stated that it was 'not disputed that Matjhabeng Municipality breached its duties under subsection 152(2) and 153(a) of the Constitution'. '[The] court [was] compelled to declare that [the] municipality is in serious or persistent breach of obligation to provide basic services and meet financial commitments as [a] result of a crisis in its financial affairs.' This pronouncement from the court revealed that the municipality itself did not contest the fact that it was failing to fulfil its constitutional duties, leading to the DA's attempt to invoke Section 139. Following that ruling, the Matjhabeng Municipality applied for leave to appeal — but Judge Van Rhyn dismissed the bid, finding no merit in the application. The court noted that the municipality introduced 'new arguments… for the first time in the application for leave to appeal,' which the judge criticised as procedurally flawed. It is not permissible for a litigant to raise new issues in an application for leave to appeal. Judge Van Rhyn Judge Van Rhyn ultimately ruled that the application had 'no reasonable prospects of success on appeal and stands to fail,' and ordered the municipality to pay the legal costs of the application. Foundation calls for transparency, forensic probes, and political accountability Despite the court's decision mandating provincial intervention, the Matjhabeng Community Foundation (MCF) has flagged alarming figures tied to the municipality's legal expenditure. According to the MCF, a staggering amount of public funds continues to be spent on legal battles — often unsuccessfully — instead of on urgently needed service delivery. City Press had previously reported that Matjhabeng was grappling with a runaway legal bill amounting to R134 million in claims — a situation that has severely strained the municipality's finances. A legal status report, authored by senior legal manager Mthuthuzeli Vanga, revealed that although the municipality adopted various litigation strategies to control legal costs since 2015, implementation was erratic and largely ineffective. Despite having multiple strategies, the municipality struggled to enforce them consistently. Teboho Elisha, acting spokesperson of the Matjhabeng Community Foundation voiced alarm over this trend, questioning whether anyone is being held accountable. The question is, when will this stop? Who is benefiting from these litigations? Teboho Elisha 'Several publications recently reported on Matjhabeng's legal status report, which laid bare taxpayers' wastage on failed litigations. Has this report been tabled before council? Who is being held accountable for the reported R300 million wasted?' Elisha also pointed fingers at the municipality's leadership. He told City Press that MCF is 'deeply concerned about the legal costs incurred by the municipality in the past three years under the leadership of [convicted mayor] Thanduxolo Khalipha'. It has been clear from the onset that the intention was never to defend the institution but to advance other motives. This is informed by the fact that the municipality has paid more than what they should have settled for. Instead of settling for R100 million acknowledged debt, they decided to defend losing cases left, right and centre, and now the costs could amount to a quarter billion. Elisha He added that 'as far as we are concerned, the legal report [by Vanga] has not been tabled before council. As ratepayers, we are still waiting for this report to be tabled in council for discussion and resolution.' Elisha called for swift accountability, stating that the foundation believes the recommendation by Vanga to appoint senior counsel for an investigation must be implemented urgently. On the broader crisis of leadership, Elisha said that 'as long as there's controversy around the leadership of the municipality, the public trust has been compromised, and ratepayers have lost hope.' The MCF had also last month submitted a formal complaint through its lawyers to Matjhabeng Speaker Bheki Stofile, questioning why there has been no investigation into misconduct complaints lodged against Khalipha. The foundation warned that reinstating Khalipha as mayor — after his criminal conviction and before the misconduct investigation was concluded — would be premature, unlawful, and open to legal challenge. City Press can confirm that Khalipha returned to office on 10 April. The MFC lawyers requested confirmation on whether disciplinary proceedings took place and asked for all reports, communication with the MEC for local government, and documentation regarding any action taken to recover municipal property allegedly withheld by Khalipha during his suspension. Elisha also criticised the ANC's internal contradictions: 'We are seeking legal advice while noting in the public domain the inconsistencies of the implementation of the ruling party constitution on step aside. We are aware that Khalipha has appealed his criminal conviction and has to appear on the Integrity Committee of the ruling party while back in the offices of the municipality. 'Having him in office before his legal matters conclude puts Matjhabeng Local Municipality in disrepute and raises legal and labour risks.' 'Since taking over, a lot of damage has been done to both the institution and residents such that his continued leadership will further deepen the crisis. Matjhabeng needs a proper leader whose credentials are not questionable. Khalipha's primary education is not sufficient to bring a significant change. It further widens the gap and decreases trust between communities and the institution,' Elisha said. On the state of services, he painted a grim picture: 'We are constantly on the ground and interact with the community regularly. We can confirm that residents of Matjhabeng are constantly confronted with raw sewage daily, and the road infrastructure is terrible with dumping sites everywhere.' Elisha said the foundation 'supports the urgent implementation of Section 139 to protect the administration from political interference,' and has called for 'forensic investigations to protect the public purse and curb wrongdoing.' On the other hand, City Press sources have revealed that the municipality's preoccupation with legal challenges has not only drained financial resources but also shifted internal focus away from collapsing infrastructure and service backlogs. One source said: 'We're in court more often than we're on the ground. The energy that should be going into fixing sewage, water supply, and billing systems is being lost in litigation that we often lose.' Another municipal official added: 'what's being exposed in court are not technicalities — they're systemic failures. These court losses aren't isolated incidents; they're part of a pattern.' As the process for placing Matjhabeng under administration unfolds, attention is turning not only to governance failures but also to how ratepayer money continues to be spent. The provincial executive now faces the task of confronting both the governance and financial rot exposed in Matjhabeng.

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