The National Treasury has put an abrupt stop to the section 154 intervention in the eThekwini Municipality, warning of unnecessary duplication and describing the intervention as a violation of the government’s cost containment measures.
The Mercury has been reliably informed that Minister of Finance Enoch Godongwana has written to the provincial department of Co-operative Governance and Traditional Affairs (Cogta) about the 154 intervention, informing them that it was a duplication of the work already being done by other task teams deployed to assist the municipality.
A few weeks ago, the provincial department of Cogta announced that former city manager Mike Sutcliffe and decorated civil servant Dr Cassius Lubisi would lead a team of experts to intervene in the municipality to identify problems that have affected service delivery.
The intervention was dubbed the “eThekwini Strategic Support Team”.
The municipality has been marred by administration failures, ranging from allegations of fraud, a series of challenges around service delivery, that include water and power outages, refuse collection, corruption and failure to spend grants.
Asked about the intervention being stopped, Cogta KZN confirmed the instruction from the national Treasury, saying it was consulting its lawyers regarding the decision.
The source claimed that following the letter from the finance minister, Lubisi resigned from the intervention.
The dismantling of section 154 intervention comes after MEC for Cogta Thulasizwe Buthelezi said to the legislature in his budget speech that he is expecting a report on the matter at the end of the month.
Minister of Cogta Velenkosini Hlabisa is also expected to meet with the teams leading the different interventions in eThekwini today, to be briefed on the work that has been done.
A source within the municipality with detailed understanding of the latest development, and aware of the national Treasury letter, said: “Dr Lubisi said he cannot be part of the intervention that is in violation of the government cost containment measures. The only person that remains with this is the former city manager Sutcliffe,” said the source.
“The Treasury warned that there is already the Presidential Working Group that has been deployed and this (new team) is a duplication of that work.”
The presidential working group is led by ANC heavyweight Mike Mabuyakhulu and composed of a variety of experts in business and governance.
“The formation of this team was never out of legitimate concerns for the city; one of its primary objectives was to find grounds to remove the current city manager Musa Mbhele.
“Keep in mind that the ANC has publicly said it did not advocate for Mbhele to be appointed to the position and many in the party still regard him as being appointed by former deputy mayor Philani Mavundla,” said the source.
The source said following the letter, it was unclear whether Sutcliffe and those he should be working with would be paid.
“The experts were hired and they would have brought in their own people to assist and when the work is done they will bill the municipality, and in light of this letter, we do not know whether that bill will be paid.”
Madoda Khathide, deputy director-general for Local Government in Cogta in KwaZulu-Natal, said the MEC was still consulting legal experts on the way forward following the developments.
Khathide said it was the provinces’ legal right to provide support.
“What we can say is that under section 154, the province has the power to provide support to municipalities, but the National Treasury is saying that because there is the presidential working group these two cannot co-exist.”
Asked about Lubisi’s resignation, Khathide said he was not aware of it and as far as he knew Lubisi was still actively involved as a convener and they expect him to deliver a report on the work done.
The Mercury reached out to Sutcliffe, who declined to speak and directed all questions to Cogta.
Lubisi did the same. ANC councillor Nkosenhle Madlala said there was a meeting scheduled for Tuesday morning on this matter: “We will know for sure tomorrow on this issue.”
Municipal spokesperson Gugu Sisilana said the letter in question from the Minister of Finance was addressed to the MEC for Cogta in the province.
“Please refer any queries regarding the eThekwini Strategic Support Team (Section 154 support) to the KwaZulu-Natal Provincial Government or the Office of the MEC for Co-operative Governance and Traditional Affairs in the province. Lastly and importantly, the municipality does not engage other spheres of government through the media,” she said.
The Mercury