Finance Minister Nene concedes to DA request and places Maluti-a-Phofung under administration

Leona Kleynhans,

DA MPL in the Free State Provincial Legislature and Constituency Head for the Maluti-a-Phofung and Phumelela Local Municipalities:

The National Finance Minister, Nhlanhla Nene, has acceded to the DA’s request and placed the Maluti-a-Phofung Local Municipality under a National Treasury financial administration.

In November last year, the DA wrote to Minister Nene requesting him to intervene in the municipality when it became clear that the ANC-led municipal government:

  • were unable to meet their financial obligations towards Eskom, resulting in continuous threats from Eskom to cut the electricity supply;
  • were unable to collect revenue from consumers;
  • had received 13 consecutive disclaimer reports from the Auditor-General; and,
  • that the municipality was also due to lose its equitable share allocation from National Government as a result of persistent financial mismanagement and maladministration.

We welcome Minister Nene’s brave approach, putting petty ANC party politics aside, and intervening in a manner that we hope would see financial order in the municipality restored so that National Treasury can resume equitable share payments needed for the delivery of services and infrastructure development.