The municipal spokesperson, Solomzi Phama, says the account was attached by at least three parties. The municipality owes the parties a combined R1.5 million in total. This has since led to the non-payment of workers for the month of February 2022. 

READ MORE: FS municipality yet again fails to pay workers' salary

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.

An intervention at the municipality has, however, came from the Department of Cooperative Governance (Cogta), says Phama. The municipality has since sent a communique to workers informing them about the latest developments.

A communique, which appears to be by acting Municipal Manager (MM), Cecilia Pitso, says "colleagues would appreciate that the subsequent impact of the attachment, has also negatively affected the payment commitments inclusive of the prior financial commitment to staff members issued on the 11th February, in as far as the date of payment and prioritisation of allowances are concerned”.

Phama tells OFM News that the municipality has since managed to strike a deal with one party who has agreed to lift the sanction on the municipal account. 

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.

“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.

Phama added that the R26 million debt to the South African Municipal Workers Union (SAMWU) and other parties are being serviced after a deal was struck last year.

OFM News