Budget - IDP - SDBIPNotices

Draft Financial Recovery Plan & Status Quo Assessment

Chapter 13 of the Municipal Financial Management Act, 2003 (MFMA) regulates the resolution of financial problems at Municipalities noting that the primary responsibility to avoid, identify and resolve financial problems in a Municipality rest with the Municipality and Council itself.

The Mangaung Metropolitan Municipality (MMM) has faced and continues to face various challenges in terms of service delivery, administration, financial management and governance. In recognising these challenges, the city undertook a strategic development review in 2017 which provided recommendations to strengthen spatial transformation, economic development, organisational and governance strengthening, improved service delivery and a need to develop and implement a financial recovery plan.

Click the below links to download the documents:

The Free State Provincial Executive placed the MMM under a mandatory intervention in terms of Section 139 (7) (a) and (c) of the Constitution in December 2019. A mandatory financial recovery plan was subsequently imposed on the Municipality in 2020. After failing for more than two years to implement the financial recovery plan during the provincial intervention, the Metro has now been placed under a national intervention in terms of Section 139(7) of the Constitution.

The managerial autonomy of senior Municipal officials has subsequently been limited by the National Cabinet through resolution of Cabinet. This allows the National Cabinet Representative (NCR) and the appointed support team to assume the responsibility for the implementation of the imposed mandatory financial recovery plan and the overall recovery processes. Given the inability or reluctance to implement the previous recovery plans, it will be recommended that measures now be implemented that would go to the core of the problems in the Municipality in terms of service delivery, administration, financial management and governance.