Following Enoch Mgijimi local municipality speaker Noluthando Nqabisa’s recent interview regarding a lack of economic intervention, National Treasury has sought to provide clarity by confirming the validity of a financial recovery plan approved by the Minister of Finance on December 14, 2022 and submitted to the municipality in accordance with the Municipal Finance Management Act.

National Treasury outlined the importance of the financial recovery plan being approved by the Minister of Finance under a nationally imposed mandatory intervention. Further, it outlined the council’s role as that of facilitating the implementation of this plan and safeguarding its progress.

Treasury noted the municipality’s inaction in implementing the plan, despite its being valid and binding under the national intervention. The department maintained that it followed due process through consultations set up to prepare and approve the plan.

The Municipal Council, meanwhile, has expressed disaffection over the current National Cabinet Representative; however, Treasury has not received the requisite proof of allegations against the representative. 

“The National Cabinet Representative has effectively been prevented and restricted from executing his responsibilities in this intervention as a result of extreme resistance and non-cooperation from the Municipal Council and administration,” the National Treasury said.