Central SA
Free State municipality finally pays its workforce─── LUCKY NKUYANE 08:53 Thu, 22 Dec 2022
Workers of the cash-strapped, Trompsburg-based Kopanong Local Municipality in the Free State have reportedly received two batches of payments.
Municipal spokesperson, Solomzi Phama, says workers received their owed salaries of November and December 2022. The municipality previously mentioned that it could not make those payments due to financial constraints.
ALSO READ: Free State municipality's financial woes continue
This municipality is among several struggling Free State municipalities which battled to service debts and also pay workers this year. The municipalities cry foul of low revenue collection from services rendered and the high number of indegent people who cannot pay for services.
ALSO READ: Free State municipality's financial woes continue
In 2021, the municipality failed to pay at least its 450 workers and creditors for at least 3 months after a Free State High Court judge attached its bank account due to debt of more than R25 million.
In November 2022, it was revealed that the municipality is in a dire financial position, allegedly worse than thought before.
ALSO READ: Free State municipality's bill is R12,2m but it collects R2,5m
According to Premier Sisi Ntombela, the municipality has a month-to-month salary bill of at least R12,2 million whereas they can only collect a mere R2,5 million in revenue. She mentioned that this troubled municipality owes the South African Revenue Services (SARS), Eskom, and Bloem Water over R500 million.
“They are using the government’s conditional grant which should have created jobs for the people and they are using it to pay the salaries. And it’s a legacy. The mayor and councillors are trying everything. They don’t even have section 56 managers because they can’t pay them,” she added.
