According to Cooperative Governance and Traditional Affairs (Cogta) MEC, Boitumelo Moila, section 139 (1) (b) of the Constitution has been invoked in municipalities to ensure local government meets its obligations. 

Accounting on the state of municipalities before the National Council of Provinces (NCOP), Moila said poor political oversight and irregular expenditure are some of the key challenges facing municipalities that have seen Section 139 interventions. She added they are working hand in hand with all municipalities to improve their financial management and to develop capacity.

Out of 22 municipalities, 13 are under administration due to their financial rut resulting in failure to provide basic services.

A presentation by the Auditor-General, Kimi Makwetu, before the council painted a gloom picture of how municipalities in this province have not only failed to produce any clean audits but how they remain in a vulnerable financial position due to a breakdown in their financial controls and lack of accountability.

Makwetu has, in his 2018/19 Local Government Audit Report, highlighted how North West municipalities have suffered a great loss due to their investment in the now liquidated VBS Mutual Bank. These include the cash-strapped Dr Ruth Segomotsi Mompati District Municipality, the Mahikeng Local Municipality, Madibeng Local Municipality, and Moretele Local Municipality.

The Madibeng Local Municipality invested R31 million of their conditional grant, the Dr Ruth Segomotsi Mompati District Municipality invested R150 million with R100 million from their regional infrastructure grant, R25 million from the equitable share-free basic services, and R25 million from the building fund. 

The Moretele Local Municipality invested R50 million from the 2017/18 water services infrastructure grant.

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