The Dannhauser local municipality in northern KwaZulu-Natal is facing the prospect of having its financial affairs taken over by the provincial treasury.
Should that happen, the municipality will be unable to make a payment without the approval from the finance MEC.
This is after the municipality repeatedly failed to come up with a budget for the 2025-2026 financial year, which starts on July 1.
The threat of the takeover is contained in a letter Finance MEC Francois Rodgers wrote to the mayor on 21 May.
Unacceptable municipality failed to pass budget
Rodgers, a DA member, told BA Hadebe, who is from the ANC, that it is unacceptable that on three occasions, he cited political instability for the failure to follow the law and table the budget that should guide spending by the municipality for almost a month.
The political instability Hadebe referred to was the removal of Sbusiso Myaka of the Community Freedom Party (CFP) as the Speaker. He was then replaced by Sebenzile Ndlela of the Inkatha Freedom Party. That ended the coalition pact the ANC had with the CFP and left it without a majority.
Rodgers said this excuse no longer holds water.
“The municipality is reminded of the consequences of failing to approve the 2025/26 Annual Budget before the start of the budget year in terms of Section 26(1) of the MFMA which states that if by the start of the budget year, a municipal Council has not approved a budget or any revenue-raising measures necessary to give effect to the budget, the Provincial Executive of the relevant province must intervene by taking any appropriate steps to ensure that the budget or those revenue-raising measures are approved including dissolving the council and appointing an administrator until a newly elected council has been declared elected; and approving a temporary budget or revenue-raising measures to provide for the continued functioning of the municipality,” Rodgers wrote.
MEC approval will be required
Rodgers added that this implies that to ensure continued future compliance with Section 26 of the MFMA (Municipal Finance Management Act), any decision taken by the municipality that will give rise to a future payment obligation may only be entered into with the written approval of the MEC.
“Please note that this matter will be referred to the MEC of Co-operative Governance and Traditional Affairs (Reverend Thulasizwe Buthelezi),” Rodgers added.
Hadebe told Sunday World that they intend to comply with the MEC’s directive by tabling the budget on 30 May 2025.
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