Central Karoo District (CKD) Municipality intervention

The Western Cape Provincial Government has issued a directive to the council of the Central Karoo District Municipality (CKD) for the purposes of the 2021/2022 Budget. The council has missed the legislated cut-off date of 30 June to adopt a budget and the Provincial executive has resolved to issue the directive in terms of its legislated duty.

The Provincial Minister of Local Government, Environmental Affairs and Development Planning, Anton Bredell and Provincial Minister of Finance and Economic Opportunities, David Maynier, have been in regular contact with the Speaker and Executive Mayor of CKD regarding the convening of a properly constituted Council meeting for the purposes of tabling the 2021/2022 Draft Budget.

“The municipality was advised and urged to table the budget but it was to no avail and accordingly the provincial government has no option but to step in at this point. The necessary paperwork has been sent to the council this afternoon,” says Bredell.

Bredell says the municipality was cautioned on the consequences of the failure to table and adopt an annual budget timeously, including that such a failure would undermine the spirit of the Municipality’s accountability to the community.

“Failing to table a budget in time also contravenes a council’s duties and responsibilities in terms of the Constitution and relevant legislation,” Bredell added.

The Provincial Executive has accordingly resolved to intervene in the Municipality and has issued a Directive inter alia directing that:

• The Speaker of the CKD Council urgently call and convene a properly constituted Special Council meeting (s) on or before 12 July 2021, of duly elected representatives of the CKD Council, for the purposes of tabling the 2021/2022 Budget;
• The CKD Council to continue meeting every 24 hours until the 2021/2022 Budget has been tabled, which tabling must take place on or before 16 July 2021;
• All duly elected councillors of the CKD Council to attend and remain in attendance at any and all meetings of the CDK Council, called and convened by the Speaker for the purposes of tabling the 2021/2022 Budget;
• After the 2021/2022 Budget is tabled, the Speaker to call and convene a properly constituted Special Council meeting / properly constituted Special Council meetings on or before 26 July 2021, of duly elected representatives of the CKD Council, for consideration and approval of the 2021/2022 final Budget;
• The CKD Council to continue meeting every 24 hours until the 2021/2022 Budget has been approved, which must take place on or before 30 July 2021; and
• All duly elected councillors of the CKD Council to attend and remain in attendance at any and all meetings of the CDK Council, called and convened by the Speaker for the purposes of approving the 2021/2022 Budget;

Should the 2021/2022 Budget not be tabled on or before 16 July 2021, or the 2021/2022 Budget not be considered and adopted by 30 July 2021, a further recommendation will be made by Minister Bredell to the Provincial Executive on the further steps to be taken to ensure that a 2021/2022 budget is approved, which steps may include dissolving the CKD Council and (i) appointing an administrator until a newly elected CKD Council has been declared elected, and (ii) approving a temporary budget or revenue-raising measures to provide for the continued functioning of the Municipality.

Until the budget is approved, the Municipality is prohibited from making any withdrawals from its bank accounts without the prior approval of Minister David Maynier.

Minister Maynier added that: “As indicated in my statement on 01 July 2021, due to the failure of the Central Karoo District Municipality to adopt a budget by 01 July 2021, the Provincial Treasury has invoked the provisions of section 26 of the MFMA and no funds may be withdrawn from the bank accounts of the municipality without my prior approval. It should be noted that the Kannaland municipality has, subsequent to 01 July 2021, successfully adopted a budget and our intervention in Kannaland on that basis has therefore been stopped. We remain committed to supporting good governance in local government to ensure continued delivery of services to residents of these municipalities.”