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Court orders dissolution of Ngwathe Municipality amid service delivery collapse

Court orders dissolution of Ngwathe Municipality amid service delivery collapse

News244 hours ago

The Free State High Court has ordered the dissolution of the Ngwathe Local Municipality, citing gross failures in fulfilling its constitutional, legislative and regulatory responsibilities toward residents in towns such as Parys, Heilbron, Koppies and Vredefort, among others.
The ruling follows a case brought by AfriForum, supported by the Save Ngwathe community group.
The parties successfully acquired an interdict compelling the Free State provincial government to immediately intervene in the municipality's affairs.
Ngwathe becomes the second municipality in the Free State to be placed under administration.
Last month, Matjhabeng Local Municipality was placed under administration following the province's MEC for Cooperative Governance, Traditional Affairs and Human Settlements, Saki Mokoena, finally invoking Section 139 of the Constitution, which outlines the process for provincial intervention in municipalities unable to fulfill its executive obligations.
READ | Matjhabeng Municipality finally under administration as province moves to address governance collapse
Mokoena's actions followed a Bloemfontein High Court judgment, handed down on 23 October 2024, which found financial mismanagement, collapsing infrastructure and poor service delivery.
Ngwathe residents allegedly suffered for years
According to court papers which AfriForum submitted, pertaining to Ngwathe, the lobby group said residents had suffered for years under dire conditions - including persistent water shortages, raw sewage flowing in the streets, crumbling infrastructure and widespread financial mismanagement.
The municipality owes more than R1 billion to Eskom and Rand Water.
In delivering judgment on Friday, Judge Johannes Daffue described the municipality and its council as 'dysfunctional' and criticised the provincial government for its inaction.
He said the case warranted judicial oversight, calling it a 'suitable case where the court should play the role of a watchdog'.
The court order instructed Free State Premier Maqueen Letsoha-Mathae and her executive council to:
Dissolve the municipal council and appoint an administrator;
Develop and implement a recovery plan to restore service delivery and ensure financial stability;
Approve a temporary budget and revenue measures to support the recovery plan; and
Submit written progress reports to the court every three months under oath.
The municipality and eight other respondents, including the premier, were also ordered to pay AfriForum's legal costs.
The judgment comes after a series of public protests in 2024, sparked by water cuts, potholes as well as a catastrophic 11% Blue Drop water quality score.
The crisis worsened when Free State's Provincial Treasury rejected Ngwathe's R2.099 billion draft budget for 2025/26, citing a falsified surplus based on an unrealistic 100% collection rate.
AfriForum's Alta Pretorius called the ruling a 'massive victory' for long-suffering residents.
Pretorius said:
This not only brings justice, but legal grounds for real intervention. The government can no longer look away.
The DA's Carina Serfontein welcomed the judgment, saying it confirmed what residents had known for years.
'We will closely track the premier's progress reports and take further action, if necessary,' she said.
The mayor of Ngwathe, Victoria De-Beer Mthombeni, acknowledged the ruling, stating: 'The executive mayor respects the judgment of the Bloemfontein High Court and is studying the judgment in detail and will communicate in due course on the processes going forward.'

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Court orders dissolution of Ngwathe Municipality amid service delivery collapse
Court orders dissolution of Ngwathe Municipality amid service delivery collapse

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time4 hours ago

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Court orders dissolution of Ngwathe Municipality amid service delivery collapse

The Free State High Court has ordered the dissolution of the Ngwathe Local Municipality, citing gross failures in fulfilling its constitutional, legislative and regulatory responsibilities toward residents in towns such as Parys, Heilbron, Koppies and Vredefort, among others. The ruling follows a case brought by AfriForum, supported by the Save Ngwathe community group. The parties successfully acquired an interdict compelling the Free State provincial government to immediately intervene in the municipality's affairs. Ngwathe becomes the second municipality in the Free State to be placed under administration. Last month, Matjhabeng Local Municipality was placed under administration following the province's MEC for Cooperative Governance, Traditional Affairs and Human Settlements, Saki Mokoena, finally invoking Section 139 of the Constitution, which outlines the process for provincial intervention in municipalities unable to fulfill its executive obligations. READ | Matjhabeng Municipality finally under administration as province moves to address governance collapse Mokoena's actions followed a Bloemfontein High Court judgment, handed down on 23 October 2024, which found financial mismanagement, collapsing infrastructure and poor service delivery. Ngwathe residents allegedly suffered for years According to court papers which AfriForum submitted, pertaining to Ngwathe, the lobby group said residents had suffered for years under dire conditions - including persistent water shortages, raw sewage flowing in the streets, crumbling infrastructure and widespread financial mismanagement. The municipality owes more than R1 billion to Eskom and Rand Water. In delivering judgment on Friday, Judge Johannes Daffue described the municipality and its council as 'dysfunctional' and criticised the provincial government for its inaction. He said the case warranted judicial oversight, calling it a 'suitable case where the court should play the role of a watchdog'. The court order instructed Free State Premier Maqueen Letsoha-Mathae and her executive council to: Dissolve the municipal council and appoint an administrator; Develop and implement a recovery plan to restore service delivery and ensure financial stability; Approve a temporary budget and revenue measures to support the recovery plan; and Submit written progress reports to the court every three months under oath. The municipality and eight other respondents, including the premier, were also ordered to pay AfriForum's legal costs. The judgment comes after a series of public protests in 2024, sparked by water cuts, potholes as well as a catastrophic 11% Blue Drop water quality score. The crisis worsened when Free State's Provincial Treasury rejected Ngwathe's R2.099 billion draft budget for 2025/26, citing a falsified surplus based on an unrealistic 100% collection rate. AfriForum's Alta Pretorius called the ruling a 'massive victory' for long-suffering residents. Pretorius said: This not only brings justice, but legal grounds for real intervention. The government can no longer look away. The DA's Carina Serfontein welcomed the judgment, saying it confirmed what residents had known for years. 'We will closely track the premier's progress reports and take further action, if necessary,' she said. The mayor of Ngwathe, Victoria De-Beer Mthombeni, acknowledged the ruling, stating: 'The executive mayor respects the judgment of the Bloemfontein High Court and is studying the judgment in detail and will communicate in due course on the processes going forward.'

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Emerging economies like South Africa may be partially shielded from the initial waves of AI automation, but when it inevitably arrives, the country could be especially vulnerable due to its large, predominantly young labour force, writes Emile Ormond. As artificial intelligence (AI) grows more sophisticated and pervasive, its potential to disrupt labour markets demands urgent attention. Will AI displace workers? Could it trigger unprecedented unemployment? There has been an influx of news articles, predictions, and expert claims that AI will be highly disruptive to the workforce. For instance, McKinsey estimates 400-800 million people globally may need new jobs by 2030, while a BCG survey found 42% of workers fear their roles may vanish within a decade. For South Africa, with an unemployment rate of 32.9% and 46.5% for youth, these predictions are dire. 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Historical, technological leaps, like the Industrial Revolutions, sparked similar fears of mass labour market disruption but ultimately resulted in substantially higher employment and productivity. For instance, more than two-thirds of the world's population lived in extreme poverty before the Industrial Revolution – today, it is less than 10%. This precedent, combined with AI's limited impact to date, may have bred complacency among South Africans, especially policymakers, that AI's impact will be manageable and a net positive. However, this view is shortsighted and lacks nuance. Rapidly increasing advances in areas such as multi-modal and agentic AI are poised to transform workplaces. The vast majority of organisations are planning on introducing or expanding their use of AI. This will see workers requiring new skills, creating new roles, and eliminating others. While the balance of these changes is debated, massive labour market disruption is almost certain. This time is different AI's unique traits, distinct from past technologies, will amplify its impact on jobs. These features include: Cognitive capabilities: Unlike earlier automation that targeted manual tasks, AI can handle complex cognitive work, such as analysis and decision-making. General-purpose technology: Like electricity or the internet, AI's application spans all sectors, driving broad economic impact and broadly fuelling productivity at an unrivalled pace. Self-improvement: AI can help enhance future iterations of itself, unlike previous technologies. For instance, the most advanced nuclear reactor cannot design new reactors, but AI can make better AI. Democratised access: Many AI tools are freely or cheaply available, unlike costly previous industrial technologies that were often limited to large, wealthy organisations. Rapid adoption: Generative AI, for example, surged from obscurity to global prominence in just three years. Now, South African workers use generative AI more than those in the US and UK. These characteristics illustrate why AI will disrupt labour markets at an unprecedented pace and scale, but not all countries and groups are equally vulnerable. SA has breathing room High-income countries, with more white-collar jobs, face earlier AI-driven disruption. For instance, 34% of European Union jobs are exposed to AI automation, compared to 19% in the African Union, according to the International Labour Organisation (ILO). Ageing populations and high labour costs may also accelerate AI adoption in developed markets. Young workers, often in entry-level roles, are particularly at risk. The ILO notes that youth hold jobs most susceptible to automation, potentially blocking their entry into the labour force. This is particularly pressing for Africa, with 350 million young Africans expected to reach working age by 2050. In other words, emerging economies like South Africa may be partially shielded from the initial waves of AI automation, but when it inevitably arrives, the country could be especially vulnerable due to its large, predominantly young labour force. In conjunction with this, AI will likely also drive massive productivity gains and create new, currently unforeseen jobs, but the transition period could be long and hard. Moreover, it could ultimately further entrench South Africa's world-leading inequality. Charting a path forward South Africa has a narrow window, as short as two to three years, to harness AI's productivity gains while mitigating its fallout. Key actions stakeholders can take include: Policy development: Political leaders must move beyond vague rhetoric and adopt nuanced, thoughtful policy positions on AI. The government should finalise a national AI strategy, released for comment in mid-2024, to address labour market impacts. Digital infrastructure: Expand reliable, high-speed internet nationwide, resolving disputes over providers like Starlink to ensure equitable AI access. Reskilling programmes: Invest in large-scale training to equip workers with AI-relevant skills and update school and tertiary education curricula for emerging roles. Responsible AI governance: Regulators and organisations should integrate AI oversight into corporate governance, aligning innovation with national development goals. Moreover, AI needs to be a cross-cutting responsibility in government. Social protections: Plans for displaced workers need to be considered now – there are nearly 19 million grant recipients, compared to a tax base of 7 million. Growth measures and/or new revenue sources will need to be found if the if the South Africa stands at the edge of an epoch-defining labour shift. The question is whether we act proactively or react in a crisis. - Dr Emile Ormond has an interest in policy analysis and risk managment.

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