5. The Reason for Intervention in Indaka Local Municipality 5.1 The main issues identified by the Provincial Executive to intervene in the affairs of Indaka Local Municipality related to the lack of capacity in the Municipal Council to exercise an oversight role and implement municipal reforms, non-submission of the 2008/09 annual financial statements, non-compliance with section 121 of the Municipal Finance Management Act (MFMA), serious deficiencies in management systems and other accounting and financial controls.