Rustenburg - The North West executive committee (Exco) has approved the extension of the financial administration intervention in the Matlosana Local Municipality, local government MEC Collen Maine said on Wednesday.

“The initial intervention was for a minimum of six months and a maximum of 12 months which means the intervention ended in June 2014,” Maine said at a Matlosana council meeting.

“The extension of the intervention means that the powers or obligations of council of Matlosana on financial management will remain with the Provincial Exco for the duration of the intervention period which ends in December 2014.”

The municipality was previously placed under section 139(1)(b) intervention in March 2013, as a result of the deteriorating financial status which compromised delivery of basic services to communities, Maine's office said in a statement.

In a S139(1) intervention, the provincial executive can intervene in a municipality when it fails to fulfil its obligations as set out in the Constitution or legislation.

The intervention allows for the provincial executive to assume responsibility for the relevant obligation.

Maine said the Exco approved additional funding for a forensic investigation into alleged maladministration, corruption and contravention of supply chain processes in the Matlosana Local Municipality.

Maine's office said Matlosana mayor Kagiso Khauoe indicated the municipality's acceptance of both the extension of the intervention and the investigation.

Khauoe told the meeting that the municipality had reached a common understanding with Eskom and the Midvaal Water Board.

Last year, Eskom reportedly threatened to cut electricity to Matlosana as the municipality was R91 million in arrears.