Decision on Provincial Intervention in Oudtshoorn Municipality

The Provincial Executive (Provincial Cabinet) yesterday approved a Temporary Budget for the Oudtshoorn Municipality.

The Council of the Oudtshoorn Municipality failed to comply with certain provisions of the Municipal Finance Management Act (MFMA) in that it did not approve an annual budget by 1 July 2013, the start of the 2013/14 municipal budget year.

In circumstances where an annual budget is not approved by the start of the budget year, the provisions of section 139(4) of the Constitution, read with section 26 of the MFMA, find application. These provisions determine that the Provincial Executive must intervene by taking appropriate steps to ensure that the budget or revenue-raising measures are approved. 

With due cognisance of the applicable legislation and relevant case law, the Provincial Executive has exercised its statutory mandate by approving a Temporary Budget for the Oudtshoorn Municipality as well as directing the Council to approve its Annual Budget by no later than 30 September 2013. This intervention will therefore effectively end on 30 September 2013 or on such earlier date as the Council may approve the 2013/14 Annual Budget.

The intervention and the approval of a Temporary Budget for the Municipality have been fully consulted with all councillors.

By approving a Temporary Budget, the Provincial Cabinet has acted swiftly, and lawfully, to ensure that the expenditure being incurred by the Oudtshoorn Municipality as from today, is authorised and regular, allowing service delivery to continue.