This as another troubled municipality in the province has had its account attached, due millions of rands in debt owed to service providers. Head of the Cooperative Governance Department (Cogta), Mokete Duma, confirms to OFM News that the cash-strapped Theunissen-based Masilonyana Local Municipality is in serious debt for failing honour payments to service providers. Duma says as a result the service providers took the municipality through the litigation processes and the municipality was slapped with an order to have its account attached.

"Definitely Masilonyana is in the same boat as Kopanong Local Municipality. Their account was attached by the service provider. I know that there are three service providers that were supplying water to them, especially in those areas that do not have a consistent supply of water like one of those measures to mitigate COVID19. But, however, the municipality due to cash flow problems not being able to collect revenue so their account is attached,” he says.
 
OFM News previously reported that the bank account of the Trompsburg-based Kopanong Local Municipality has also been attached, allowing the South African Municipal Workers Union (Samwu) to take control of it following a court battle over a R25 million third-party payment dispute. 

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Last week the Theunissen-based Masilonyana Local municipality announced to residents that its workers had embarked on a strike on Thursday and said has since led to the interruption of services. Duma adds that the municipality does have money in their investment account but as of now, they can’t do anything from the investment account because that will not be consistent with the municipal finance management act (MFMA).
 
“What’s needs to happen is that they must find a way of negotiating with the service providers and yesterday we had a meeting the provincial treasury department to try and mitigate some of these issues and we agreed that they must write letters to the service providers and indicate how much they will be able to pay and the reason for that is to allow the account to unfrozen, pay service providers a particular amount of moany and indicate how much they will be able to pay towards the area account,” Duma further adds.

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OFM News previously reported that the workers at the municipality were not paid on time in June and July 2021. At the time the Department of Cooperative Governance and Traditional Affairs (Cogta) in the Free State said municipalities such as Masilonyana would not receive a helping hand for a bailout to deal with the financial stress.
 
 At the time Duma, said the municipality had approached them for assistance regarding employees' salaries. He said despite the department being fully aware of the challenges facing this municipality, the department "won’t be able to bail them out this time". Duma said the department’s budget is constrained owing to the effects of the coronavirus pandemic.
 
OFM News