Volume 16, Issue 2, June 2021

Court stops reckless electricity outsourcing contract
Author: Curtly Stevens
Published: 24 Jun 2021
Can a municipality under a section 139(5) intervention avoid or by-pass an Administrator, or adopt decisions, such as entering into contracts, that undermine a Financial Recovery Plan? According to the Western Cape High Court, in Executive Council of the Western Cape Province and Others v Kannaland Local Municipality and Others the answer is no. The Court stopped Kannaland Municipal Council from implementing a Public-Private Partnership (PPP) contract involving the outsourcing of electricity after the Municipality had acted unlawfully and at the detriment of its financial sustainability.
lgb-supervision Local Government Bulletin lgb-governance
Recovering fruitless and wasteful expenditure: Nelson Mandela Bay v Lindele Antonio Petuna
Author: Tinashe Carlton Chigwata
Published: 21 Jun 2021
Year after year, the Auditor General exposes how too many municipalities incur significant amounts of fruitless and wasteful expenditure. The Municipal Finance Management Act of 2003 (MFMA) defines fruitless and wasteful expenditure as ‘expenditure that was made in vain and would have been avoided had reasonable care been exercised’.
lgb-municipal-administration Local Government Bulletin lgb-municipal-expenditure
SCA tells Eskom to exhaust alternative dispute resolution before cutting electricity
Author: Xavia Poswa
Published: 18 Jun 2021
Eskom is struggling to recover monies owed to it by municipalities for the supply of bulk electricity. Municipal debts to Eskom have ballooned to alarming proportions. To address this, Eskom introduced a debt recovery process that would see the supply of electricity to many indebted municipalities cut off, or limited. In Eskom Holdings SOC Ltd v Resilient Properties (Pty) Ltd and Others, the Supreme Court of Appeal ruled that Eskom‘s decision to cut off electricity to Emalahleni (ELM) and Thaba Chweu local municipalities (TCLM) was unconstitutional.
Local Government Bulletin lgb-intergovernmental-relations
Stepping aside, But then What? How the ANC's Resolution affects councillors
Author: Jaap de Visser
Published: 18 May 2021
The African National Congress (ANC) is implementing a resolution, which provides that members who face criminal charges for corruption, must ‘step aside’. It means, amongst other things, that these members may no longer represent the ANC on any public body. How does this affect ANC members who represent the party as councillors? And what does it mean for the municipality in which they serve?
lgb-supervision Local Government Bulletin lgb-establishment-demarcation-elections lgb-governance
The ‘download’ on personal information: The Protection of Personal Information Act and Municipalities
Author: Shehaam Johnstone
Published: 24 Jun 2021
In an age of information warfare, identity theft and the mismanagement and commercialisation of personal information in the digital world, the right to privacy in the Constitution and the Protection of Personal Information Act 4 of 2013 (POPIA) are vital tools that must be used to mitigate the risks that ordinary citizens face when sharing personal information. This article reflects on the question of whether municipalities, which are often the primary interface between citizens and government, are ready to implement and fulfil the requirements of POPIA and more specifically, it examines the obligations which municipalities now bear to lawfully process personal information.
Local Government Bulletin lgb-infrastructure lgb-governance
Why appeals against tender awards by the municipal manager are unlawful
Author: Jaap de Visser & Nico Steytler
Published: 18 Jun 2021
Separating politics from administration is the cornerstone of the fight against corruption and maladministration in municipalities. When councillors meddle in the administration, and/or administrators interfere with politics, bad governance and, ultimately, service delivery failure is almost always the result.
lgb-municipal-administration Local Government Bulletin lgb-municipal-expenditure lgb-governance