5. Problems Identified by the Provincial Executive Council (PEC) 5.1 On 06 October 2010, the Executive Council of the KwaZulu-Natal Province resolved to intervene in the Municipality as contemplated in terms of section 139(1)(b) of the Constitution. The background to the intervention by the Provincial Executive is a result of serious financial problems and the fact that the municipal executive committee and the municipal officials had failed to exercise oversight and fulfil specific legislative obligations, and services could no longer be rendered effectively.