THEEWATERSKLOOF Local Municipality - Financial Recovery Plan - August 2025 - Executive and Three-Phase Recovery Approach

Sep 10, 2026

Financial Recovery Plan for Theewaterskloof Local Municipality (August 2025) sets out an executive overview, the scene-setting background, and the statutory and legislative context governing the recovery process. It details required preparation, consultation, approval, and the implementation of an intervention package, including key risks and a communication plan. The plan then assesses governance, institutional, financial management, and service delivery status quo findings, followed by a three-phase recovery framework covering rescue, 12–24 month stabilisation/recovery, and long-term sustainability.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages77

Reading Time3 h 14 min

AccessFree to download

Executive Summary

Part One: Setting the Scene

Background

Statutory and Legislative Context

Preparation, Consultation and Approval of the Mandatory Financial Recovery Plan

Implementation of the Intervention and Financial Recovery Plan

Risks Associated with the Implementation of the Financial Recovery Plan

Communication Plan

Part Two: Status Quo

Governance Status Quo Assessment Key Findings

Institutional Status Quo Assessment Key Findings

Financial Management Status Quo Assessment Key Findings

Service Delivery Status Quo Assessment Key Findings

Part Three: Three-Phased Recovery Plan

Phase 1: Rescue Phase

Phase 2: Stabilisation/Recovery Phase (12 – 24 Months)

Phase 3: Sustainability Phase (Beyond 24 Months)

Part Four: Reporting

Monthly Reporting on Achievement of Targets: Theewaterskloof LM

Reporting Framework: Progress Against Targets

IGR Arrangements

Recommendations

Approval

Annexure A: FRP Implementation Plan

Annexure B: Index of Portfolio of Evidence Reviewed

| | +
FINANCIAL RECOVERY PLAN
for the
THEEWATERSKLOOF LOCAL MUNICIPALITY
AUGUST 2025

| | | --- | --- | --- | CONTENTS 1. EXECUTIVE SUMMARY ......................................................................................................... 3 2. PART ONE: SETTING THE SCENE ....................................................................................... 6 2.1. BACKGROUND ....................................................................................................................... 6 2.2. STATUTORY AND LEGISLATIVE CONTEXT ......................................................................... 6 2.3. PREPARATION, CONSULTATION AND APPROVAL OF THE MANDATORY FINANCIAL RECOVERY PLAN .................................................................................................................. 8 2.4. IMPLEMENTATION OF THE INTERVENTION AND FINANCIAL RECOVERY PLAN ........... 10 2.5. RISKS ASSOCIATED WITH THE IMPLEMENTATION OF THE FINANCIAL RECOVERY PLAN ..................................................................................................................................... 11 2.6. COMMUNICATION PLAN ..................................................................................................... 11 3. PART TWO: STATUS QUO .................................................................................................. 11 3.1. GOVERNANCE STATUS QUO ASSESSMENT KEY FINDINGS .......................................... 12 3.2. INSTITUTIONAL STATUS QUO ASSESSMENT KEY FINDINGS ......................................... 15 3.3. FINANCIAL MANAGEMENT STATUS QUO ASSESSMENT KEY FINDINGS....................... 17 3.4. SERVICE DELIVERY STATUS QUO ASSESSMENT KEY FINDINGS ................................. 22 4. PART THREE: THREE-PHASED RECOVERY PLAN .......................................................... 32 4.1. PHASE 1: RESCUE PHASE.................................................................................................. 32 4.2. PHASE 2: STABILISATION/RECOVERY PHASE (12 – 24 MONTHS) ..................................45 4.3. PHASE 3: SUSTAINABILITY PHASE (BEYOND 24 MONTHS OR THE TERMINATION OF PHASE 2) .............................................................................................................................. 56 5. PART FOUR: REPORTING .................................................................................................. 61 5.1. MONTHLY REPORTING ON ACHIEVEMENT OF TARGETS: THEEWATERSKLOOF LM .. 61 5.2. REPORTING FRAMEWORK: PROGRESS AGAINST TARGETS ......................................... 61 5.3. IGR ARRANGEMENTS ......................................................................................................... 62 6. RECOMMENDATIONS ......................................................................................................... 62 7. APPROVAL........................................................................................................................... 63 ANNEXURE A: FRP IMPLEMENTATION PLAN ........................................................................... 64 ANNEXURE B: INDEX OF PORTFOLIO OF EVIDENCE REVIEWED ........................................... 65 ABBREVIATIONS AGSA Auditor General of South Africa | AFS | Annual Financial Statements | | --- | --- | | AMD | Average Maximum Demand | | BAC | Bid Adjudication Committee | | BFP | Budget Funding Plan | | COS | Cost of Supply Study | | CPI | Consumer Price Index | | CRO | Chief Risk Officer | | DB | Disciplinary Board | | DCAS | Department of Culture Affairs and Sports | | DLG | Department of Local Government | | DWS | The Department of Water and Sanitation | | EEDSM | Energy Efficiency and Demand Side Management. | | FAR | Fixed Asset Register | | GDP | Gross Domestic Product | | GIS | Geographical Information System | | GPS | Global Positioning System | | GVA | Gross Value Added | | GRAP | Generally Recogni

FAQs

What are the main stages of the Financial Recovery Plan for Theewaterskloof Local Municipality?

The plan is structured in three phases: Phase 1 rescue, Phase 2 stabilisation/recovery for 12–24 months, and Phase 3 sustainability beyond 24 months or after Phase 2 terminates.

What status quo areas does the document assess before outlining recovery actions?

It assesses governance, institutional status quo, financial management status quo, and service delivery status quo, with key findings for each area.

How does the plan handle oversight and ongoing reporting?

It includes reporting sections covering monthly reporting against targets for Theewaterskloof LM, a reporting framework focused on progress against targets, and IGR arrangements.

Sep 10, 2026

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