The North West Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA) have secured a multi-stakeholder commitment to support nine municipalities currently under mandatory intervention, as part of efforts to restore financial stability and improve service delivery.
The agreement was reached during an intergovernmental engagement held in Klerksdorp on Monday, which brought together the Dr Kenneth Kaunda, Dr Segomotsi Mompati and Dr Ngaka Modiri Molema District Municipalities, alongside key sector partners.
Stakeholders in attendance included the South African Local Government Association (SALGA), Eskom, the Department of Water and Sanitation, the Municipal Infrastructure Support Agent (MISA), and Midvaal Water Company.
Held under the theme: “Strengthening Intergovernmental Relations and the Implementation of Financial Recovery Plans and Service Delivery”, the engagement aimed to shift municipalities from prolonged financial distress to a more stable and sustainable fiscal position through the Revised Financial Recovery Plan (FRP) strategy.
During the meeting, delegates discussed the revised mandatory interventions and the implementation of Financial Recovery Plans across the nine municipalities under intervention.
A key outcome of the meeting was the signing of an intergovernmental collaboration commitment, binding all stakeholders to a coordinated and structured approach to municipal recovery.
The commitment is aligned with the principles of cooperative governance outlined in Chapter 3 of the Constitution and supports mandatory interventions in terms of Section 139(5)(a) and (c), read together with the Municipal Finance Management Act (MFMA) of 2003.
It is expected to guide efforts to stabilise municipalities and restore functionality across critical areas, including governance, financial management, institutional performance, and service delivery.
Under the agreement, each signatory will contribute within its legislative mandate.
The Provincial Treasury will provide budget support, implement revenue enhancement strategies, and monitor financial performance, while Eskom and Midvaal Water Company will assist with improving billing systems, reducing losses and restructuring municipal debt.
MISA will deploy technical expertise to support infrastructure and operational improvements, and the Department of Water and Sanitation will assist with water services planning and infrastructure grant applications.
North West Finance MEC Kenetswe Mosenogi said the Provincial Treasury would now work with all signatories to translate the commitment into coordinated support on the ground, with progress tracked through the agreed monitoring mechanisms.
“This commitment affirms our collective accountability to restore the financial health, functionality, and service delivery capacity of municipalities under intervention. Recovery is only possible when every sphere of government and every partner institution pulls in the same direction,” Mosenogi said. – SAnews.gov.za
