The municipality is entangled in the massive debt owed to service providers and third parties, for example pension funds, running into millions of rands. The municipality in 2021 failed to pay workers’ salaries for almost three months, with 450 workers in limbo and frustrated whilst debit orders strained their accounts. 

READ MORE: Kopanong employees not paid in two months

Some workers even told OFM News that they had fears of losing their vehicles and houses due to the non-payment for three months.

READ MORE: Kopanong workers healthcare at stake

A letter, that seems to be signed by the now acting Municipal Manager (MM), Cecilia Pitso, informs these workers that their salaries will be paid in mid-March 2022 due to cash flow challenges faced by the municipality. 

The municipality is yet to comment on OFM News' enquiry.

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.

OFM News previously reported that the Head of the Department (HOD) of Cooperative Governance (Cogta), Mokete Duma, said that the Free State Executive Council (Exco) was expected to invoke a decision to put the ailing municipality under administration, with almost similar sanctions as the Mangaung Metro Municipality's.

READ MORE: Cash-strapped Kopanong to be put under administration

“What we are contemplating - and we are requesting a decision and approval from the executive council - is to place the municipality under subsection 139 section 5 (A) & (C), which talks about the financial recovery plan. Section 139 subsection 5(A) talks about the voluntary financial recovery plan and then section 139 and subsection 5(C) talks about the mandatory financial recovery plan. It’s almost what we have invoked in Mangaung,” he added.

Meanwhile, this letter sent to workers informs that the outstanding payments will be effected to ease the burden on employees, subject to verification and compliance. They include outstanding overtime and standby allowances, Covid allowances, bank charges, acting and travelling allowances.

The municipality has since apologised for any inconvenience this might cause.

In 2021, the National Treasury’s Malijeng Ngqaleni issued a stern warning to the Department of Cooperative Government (Cogta) and Kopanong that it will not be an accomplice in the municipality’s delinquent act. This was after Cogta wrote to Treasury, seeking guidance on how to resolve the financial issues at the municipality, following the Free State High Court's order to attach the municipality's bank account for failing to pay over third-party contributions, worth R26 million, since 2012.

The Provincial Treasury and Cogta wanted to release millions of rands into the Xhariep District Municipality to pay salaries and services but the move has been shot down by Treasury because it’s deemed to be illegal.

READ MORE: Treasury weighs in on Kopanong's financial mess

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