4.2 The main issues that were identified by the PEC in the Municipality related to critical challenges in the areas of financial; administrative; political and institutional instability; vacant position of Municipal Manager; Chief Financial Officer and Duty Chief Financial Officer; inability to pay employees' salaries and councillors' allowances; service delivery related problems; lack of proper effective billing system and low collection rate of service charges and certain officials of the Municipality not adhering to the municipal supply chain management policy.