KNYSNA NEWS - With suggestions for Knysna to be placed under administration to deal with the municipality’s financial woes, experts have unpacked what this would mean for the town.

While administration is a last resort, there are less extreme measures to assist Knysna including sections 139(5)(a) and (c) of the Constitution.

Section 139(5)(a) provides for the provincial government to impose a recovery plan to ensure the municipality is able to meet its obligations. This would mean the municipality would have to follow the recovery plan in the exercise of its legislative and executive authority.

Under section 139(5)(c), the provincial government can assume the responsibility for the implementation of the recovery plan if the municipality is unable to or does not implement the plan itself.

This is said to be different from placing the municipality under administration, which can only be implemented in terms of sections 139(1) and 139(5)(b) of the Constitution.

Under section 139(5)(b) the provincial government may dissolve Knysna’s council if the council is not able to or does not approve legislative measures – including a budget or any revenue-raising measures – necessary to give effect to the recovery plan.

It is only then that an administrator can be appointed. This will mean that one individual will have full executive powers and that Knysna in such a case will no longer have a council until a new council is elected.

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