(Amathole District Municipality, Facebook)
The municipality can't afford to pay its salary bill of R65 million per month.
People in the six local municipalities under Amathole have been enduring interrupted and unreliable service for three years.
The embattled Amathole District Municipality has been placed under administration.
The Eastern Cape government announced on Thursday morning that its executive council had taken a decision to invoke Section 139 (5) (a) of the Constitution of the Republic of South Africa into the affairs of the district authority.
The Constitution states that the provincial government may impose the Section 139 (5) (a) if a municipality, as a result of a crisis in its financial affairs, is in serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments, or admits that it is unable to meet its obligations or financial commitments.