The National Treasury has advised Enoch Mgijima Local Municipality (EMLM) to rescind the decision to extend municipal manager Nokuthula Zondani’s employment contract as it is an illegal decision, which could lead to council being dissolved if failing to do so.
In a letter to EMLM council speaker Noluthando Nqabisa, and in possession of Komani-Karoo , Express, Treasury registered its disagreement with what it termed irregular and unlawful decision by council in the absence of the National Cabinet Representative (NCR) Dr Monde Tom.
Treasury said Zondani’s contract was to end on October 31 as resolved by council on October as per council resolution of September 28.
“Council further resolved that she serve the remainder of the notice period on leave. The National Treasury has also recently written to the Council recommending that Zondani be placed on precautionary suspension given the fact that she was not willing to cooperate with processes initiated to reconstruct destroyed documentation required by the NCR and team. Her continued employment in the municipality poses a serious risk to the objectives of this national intervention by Cabinet,” the statement said.
The letter pointed out that Nqabisa should be familiar with Section 57(6) of the Municipal Systems Act, 2000. The section state that the employment contract of a municipal manager may not exceed a period of one year after the election of the next Council of the municipality.
“The current municipal council was elected in November 2021; the expiry date of 31 October 2022 aligns to the maximum period by which she could lawfully remain in this position. Hence, the decision by the municipal council to extend the contract by three-months is unlawful in that it contravenes the requirements to the Municipal Systems Act as amended. Furthermore, the municipality is under national intervention and the reasons as to why Council would support a decision that contradicts the advice of the National Treasury is unclear.”
“Such actions by Council indicate a lack of support for the objectives of the intervention and that of the financial recovery plan. According to Section 139(5) (b) of the Constitution, such action by Council can provide a basis for its dissolution. We therefore caution the municipal council to ensure that all executive and statutory decisions taken are aligned to the objectives of this intervention and the financial recovery plan consistent with the provisions of section 146(2) of the MFMA.”
Treasury advised council, through its speaker, to urgently reconvene and rescind the “impugned” to extend the contract by three months.
Processes to obtain an urgent court interdict would be initiated should council fail to rescind the decision. Any unauthorised, irregular, fruitless and wasteful expenditure incurred by the municipality as a result of the decision by council, it will be recommended that these costs be recouped directly from the councillors in their personal capacities.
“In order to resolve this situation within the framework and spirit of our Constitution and to ensure that council is not acting in contravention of the law, we urge the municipality to convene urgently and rescind the decision in question,” the letter said.
Nqabisa confirmed receipt of the letter.
“We extended (the contract) based on the contents of Section 54A(1)(b) and not intentionally erred. Council already sat on November 11 and implemented the Ministry of Finance’s advice,” she said.
Section 54A(1)(b) states council must appoint an acting municipal manager under circumstances and for a period as prescribed.
