Primary briefing · Gazette
high impact 9024 · Provincial Notice 1454 of 2026 · 2026-06-25
Mandatory intervention at four North West municipalities — PER displaces council and controls all expenditure
Effective from
25 Jun 2026
The MEC for Finance in the North West Province has published terms of reference for a Provincial Executive Representative (PER) and multi-disciplinary support team appointed under section 139(5)(c) of the Constitution read with section 146(3)(b) of the MFMA to implement mandatory financial recovery plans at Madibeng, Tswaing, Kgetlengrivier, and Naledi Local Municipalities. The PER assumes all executive functions of the municipal council and mayor necessary for FRP implementation, must approve all decisions taken by each Municipal Manager, and implements systems to control and approve all expenditure. Critically, the PER's mandate includes assessment of existing contractual obligations and authority to negotiate contractual payments and scope with service providers. The intervention covers four pillars — finance, governance, institutional capacity, and service delivery — with quarterly reporting to the MEC for Finance and MEC for COGHSTA.
Who is affected
Municipal service providers and contractors with existing or pending contracts at Madibeng, Tswaing, Kgetlengrivier, or NalediCreditors of the four affected municipalitiesRatepayers and property owners in the affected municipalitiesMunicipal councillors and officials at the four municipalitiesLocal government and municipal finance practitioners What this means for practitioners
Clients with existing municipal contracts, outstanding claims, or pending procurement at any of the four municipalities must be advised that the PER now controls all expenditure approvals and may renegotiate contractual payments and scope
Review any delegated authority or approval chains that previously ran through the Municipal Manager — all such decisions now require PER approval
Monitor quarterly PER reports to the MEC for Finance and MEC for COGHSTA for signals on contract renegotiation, expenditure priorities, and service delivery changes
Creditors should assess the impact of PER-controlled expenditure approval on payment timelines and engage proactively with the PER's office