The Dr Nkosazana Dlamini-Zuma municipality in Ixopo, KwaZulu-Natal, has been placed under administration.
Provincial Co-operative Governance and Traditional Affairs (Cogta) MEC Nomusa Dube-Ncube made the announcement at a special council meeting held at the municipality on Wednesday.
The municipality was established after the August 2016 local elections, by the merging of Ingwe and Kwa Sani local municipalities.
The decision to place the municipality under administration was taken earlier on Wednesday by the provincial executive council, led by Premier Willies Mchunu.
The municipal council failed to exercise executive decisions, including the appointment of senior officials and a municipal manager, according to Cogta.
The contract of the last municipal manager Nkosiyezwe Vezi, came to an end on January 31, according to media reports.
"The breakdown in discipline and decision-making in this council has necessitated a direct intervention by the provincial executive," said Dube-Ncube.
She said the municipality's council has repeatedly failed to appoint the municipal manager and, "in doing so, paralysed the administrative capacity of the municipality to manage its affairs and deliver services to its residents".
"Our job is to ensure that all municipalities in KZN function optimally. We cannot and will not tolerate behaviour by councillors that flagrantly disregard the code of conduct to which all our councillors are signatories. There must be consequences for misconduct and this is why this intervention is taking place here," said Dube-Ncube.
She said their intervention must send the strongest message that the KZN government will not tolerate high vacancy rates in municipalities, non-compliance with rules and regulations, inappropriate spending of budgets, and a lack of skilled personnel for critical posts.
"We send a strong message that communities will not accept that we have in municipalities defocused councillors and administrators that are not prioritising effective and efficient functioning of their municipalities. We must remember that people have entrusted to deliver speedily on their basic services," said Dube-Ncube.
Dumisani Vilakazi, a ministerial representative, has been immediately tasked to develop a recovery plan and to oversee councillors.
"He will also conduct an evaluation of decisions taken in council and assess whether they did not prejudice the municipality in any manner. This may lead to those who were part of wrong decisions paying from their own pockets," she said.