Ditsobotla: Finance Minister Enoch Godongwana has urged the leadership of the Ditsobotla Municipality to fully embrace the national intervention to strengthen the municipality.
According to South African Government News Agency, the Minister visited the North West municipality on Friday to officially hand over the revised Financial Recovery Plan (FRP) and outline its implementation. The municipality was placed under administration in terms of section 139(7) of the Constitution in a bid to stabilize it.
Minister Godongwana highlighted that a lack of understanding of the intervention process might have contributed to previous failures. He emphasized that operating under intervention requires a shift in habits, attitudes, and mindsets, as the municipality is functioning under constrained financial conditions. Officials from the Municipal Financial Recovery Services unit are already assisting with change management.
Godongwana also pointed out that strained finances meant financial assistance was unlikely. However, he assured that other forms of support would be provided. The National Treasury will explore options such as smart metering and bulk supply metering to assist the municipality.
The municipality has completed the Section 78 process required to sign the Distribution Agency Agreement (DAA) with Eskom, allowing the power utility to take over revenue collection. Sector departments have also committed to supporting the municipality.
Furthermore, in terms of Section 147 of the Municipal Finance Management Act, the Minister will ensure that progress reports are presented on a quarterly basis to Cabinet. The National Treasury will continue oversight visits and monitor the financial recovery plan's implementation through monthly progress reports and quarterly War Room meetings.