In an internal memorandum by the acting Municipal Manager, Kadimo Masekoane, dated July 23, it is revealed that municipality managed to receive funding from the provincial government and will, as a result, be paying the salaries of all employees in the next days with the exception of senior managers and councillors.

A spokesperson for the Department of Cooperative Governance and Traditional Affairs (Cogta), Zolile Lobe, explains the money allocated is strictly only for employees and not the management of the municipality. Masekoane says the Senior Managers and Councillors will, therefore, receive their salaries at the end of July.

OFM News reported previously that during the tabling of the 2019/20 budget, Cogta MEC, Thembeni Nxangisa, stressed that the department would not use any of its R456 million budget to provide financial support to distressed municipalities. He said they would instead support municipalities with skills, financial management skills and infrastructure development.

Meanwhile, the DA in the province has written to Cogta Minister, Nkosazana Dlamini-Zuma, requesting that Maluti-A-Phofung’s Council be dissolved, citing the municipality’s financial instability as the primary reason. DA Member of the provincial legislature, Leona Kleynhans, says the National Treasury had informed the municipality that it was going to withhold its equitable share and conditional grant payments due to its failure to comply with legislative procedures.

It was reported that Maluti-A-Phofung, one of Eskom’s major debtors, was unable to pay June salaries in time, with Masekoane saying there was a shortfall of R10,7 million.

OFM News