The Premier of the Western Cape v Overberg District Municipality and Others

The provincial executive of the Western Cape dissolved the council of the Overberg District Municipality under s 139(4) of the Constitution after the municipality failed to approve an annual budget before the start of the 2010/2011 financial year. The failure was caused by a deadlock following the resignation of the council speaker and the municipal manager’s refusal, based on incorrect legal advice, to convene a council meeting despite written requests by the majority of councillors. Although a majority of councillors purported to approve the budget at a meeting on 9 July 2010, that meeting was invalid due to lack of proper notice to all councillors. Relying on legal advice that dissolution was compulsory once a budget was not approved by 1 July, the provincial cabinet dissolved the council, appointed an administrator and approved a temporary budget. The municipality and former councillors successfully challenged the decision in the High Court, leading to this appeal.

The appeal was dismissed with costs, including the costs of two counsel; the High Court order setting aside the dissolution of the municipal council stood.

The case is a leading authority on the interpretation of s 139(4) of the Constitution, clarifying that provincial intervention in local government is discretionary and context-sensitive rather than mechanically punitive. It reinforces the constitutional status and autonomy of local government and affirms that executive decisions taken under constitutional powers are reviewable for legality.