Central SA
Broke Free State municipality under spotlight for hiring more staff─── LUCKY NKUYANE 16:10 Mon, 22 Aug 2022
A Free State cash-strapped local municipality is once again in the spotlight for employing more workers whilst it has a budget constraint.
The Trompsburg-based Kopanong Local municipality, which has in the past struggled to pay its workforce and pay for services due to cash flow issues, has allegedly been hiring more staff despite the given history. However, its spokesperson, Solomzi Phama, confirms and tells OFM News that the positions were budgeted for. At least 450 workers at this municipality, once in 2021 and this year, spent at least weeks before they received their salaries following cash flow issues, which were exacerbated by debts which run into millions.
ALSO READ: Another ailing municipality fails to pay salaries
The municipality is amongst others which earlier this year had approached the Provincial Department of Cooperative Governance (Cogta) for a bailout, merely two months after the 2021/22 financial year-end.
ALSO READ: Eleven Free State municipalities beg for bailout
In 2021, OFM News reported that the financial crisis at the municipality was exacerbated by the attachment of the municipality's bank account by the Free State High Court, over the failure to pay pension fund contributions since 2012.
This debt ran into R26 million.
ALSO READ: FS municipality’s account attached yet again
