DA Northern Cape Leader
082 383 6914
The Democratic Alliance in the Northern Cape is calling for National Treasury to invoke Section 216(2) of the Constitution against the Mier Municipality. This, after it has come to our attention that the said municipality is apparently struggling to pay its January 2013 salaries, and is assumed to be on the brink of bankruptcy.
Mier municipality is one of eight municipalities that was warned by National Treasury in January this year, that it was at risk of having its transfers of the municipality’s remaining share of the 2012/13
Equitable Share and conditional grants allocations, stopped. This came after the municipality failed to compile and or submit its annual financial statements to the Auditor-General.
As far as the DA is concerned, the fact that the municipality can’t pay its salaries, or in turn act as a going concern, is grounds for a high level intervention. Clearly this municipality is failing to
adequately manage its financial and needs urgent guidance and a firm hand, to get it on track.
National Treasury already made an example of the Nala Municipality in the Free State, by stopping all financial transfers to the municipality because of its persistent breach of financial management
prescriptions and alleged mismanagement of public funds. The drastic move paid off and by the beginning of February this year, National Treasury withdrew the suspension of transfers because of the
satisfactory progress made by the municipality in addressing Treasury’s concerns relating to financial management. Surely then this is proof that determined action against non-complying institutions pays
dividends and is good reason to replicate this move in other municipalities.
The DA will write a letter to our Provincial Treasury, asking them to take up the matter of Mier municipality with the National Treasury. At the same time, we will be closely monitoring the Northern Cape’s
Renosterberg, Joe Morolong, Kai! Garieb and Kgatelopele municipalities, whose financial management is also bordering on crisis mode and who received similar warnings from National Treasury earlier this year.
The people of the Northern can’t afford to lose another cent to maladministration, flouting of procurement processes, fraud and corruption. We hope Treasury agrees.