The Theunissen-based municipality remains under severe strain as workers remain unpaid after Sars attached municipal accounts due to non-compliance. The attachment has left the cash-strapped municipality unable to meet its basic obligations, including paying salaries.

The municipality had entered into separate repayment agreements with Sars and Eskom to manage its escalating debt, which officials have repeatedly attributed to longstanding historical challenges.

In a communication to staff, municipal manager Mojalefa Motlale confirmed a high-level meeting was held on Monday (2/2) involving municipal officials, Sars, the department of cooperative governance and traditional affairs (Cogta), the local government association (Salga), and the National Treasury.

While the engagements were described as constructive, no final resolution was reached, he said. Sars has requested additional documentation from the municipality, which must be submitted by Tuesday (3/2) at 09:00.

“Although the meeting was challenging, the engagements were positive and encouraging. All stakeholders acknowledged the urgency of the matter, and it is therefore being treated as an emergency.

Final decision

“At this stage, the municipality cannot confirm when the final decision will be communicated, and further updates will be provided once feedback is received, anticipated by Wednesday. 

“The municipality continues to do everything possible to resolve this matter as soon as possible,” said Motlale.

Financial mismanagement

Masilonyana has for years battled financial mismanagement and poor service delivery. When appearing before the Free State Legislature last year, Motlale conceded the municipality was in a dire financial position, with third-party debt exceeding R100 million.

Last week, the provincial government placed Masilonyana under administration. In a letter addressed to mayor Dimakatso Modise, Free State Cogta MEC Saki Mokoena confirmed the intervention is being implemented in terms of Section 139(1)(b) of the Constitution.

The provision allows a provincial executive to assume responsibility for certain municipal executive functions when a municipality fails to fulfil its obligations.

Mokoena cited serious allegations of maladministration involving both Modise and Motlale. These concerns were uncovered during a visit by the national Cogta joint portfolio committee in July last year, he said, which allegedly resulted in a complete breakdown of relations between the mayor and the municipal manager.

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OFM News/Kekeletso Mosebetsi dg