Financial instability grips 16 Eastern Cape Municipalities: A Call for Urgency

In a troubling turn of events for the Eastern Cape, the MEC of Cooperative Governance and Traditional Affairs, Zolile Williams, revealed that 16 out of the province’s 39 municipalities are “financially unstable.” The bleak status of these municipalities came to light during a Bhisho Legislature session during which Williams responded to questions from the Democratic Alliance.

The instability markers were determined on the basis of performance in four key areas: sustainability, financial health, governance, service delivery and institutional stability. Among these at-risk municipalities, intervention has been identified as necessary for Amathole, Chris Hani and OR Tambo District municipalities along with Makana and Walter Sisulu Local Municipalities under section 139(5) of the Constitution. Williams further noted that financial recovery plans have only been approved for ADM and Makana municipalities, with only these two having appointed „workstream champions“.

Expressing the urgency of the predicament, DA MPL, Dr Vicky Knoetze pointed to years of mismanagement, cadre deployment, disinvestment by provincial government, and neglect as the root causes of the dire financial situation for these municipalities. Knoetze, the COGTA Shadow MEC, calls on COGTA MEC and Premier Oscar Mabuyane for immediate intervention in order to prevent total collapse of service delivery within these provinces.