Saturday, October 22, 2011

What it means when a municipality is placed under administration.

In terms of Section 139 of the 1996 Constitution the MEC for Local Government and Housing is empowered to place a municipality under administration when it cannot or does not adhere to minimum standards, e.g. for financial management or the rendering of services that are required by law. The latter include the provision of electricity, water, refuse collection, etc.

The MEC issues a clear directive to attend to an ailing municipality, and may designate and charge either an official of one of the province’s departments or someone contracted from outside the department. That person is usually called an ‘administrator’.

It is important to note that the municipal council retains its power to legislate with regard to issues such as the passing of by-laws, the approval of budgets or the imposition of rates, taxes or other levies. The administrator assumes responsibility only for those obligations that were mentioned in the MEC's directive.

Finally the MEC instructs the council to carry out certain steps to remedy the situation which caused the intervention in the first place, failing which the council can be dissolved. Read more ...

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