This follows merely two months after the 2021/2022 financial year end.

The municipalities, which include Masilonyana, Kopanong and other struggling municipalities, have failed to pay workers’ salaries or meet their monthly obligations among other issues.

According the Cogta spokesperson, Sello Dithebe, the municipalities in their bid to get financial assistance claim they are experiencing cash flow problems.

Dithebe says bailing out these struggling municipalities is not only against the law but it is also not sustainable.

“National treasury has advised against the provincial departments of Finance, Cooperative Governance and Traditional Affairs, or provincial government funding salaries for municipalities - in fact it would be against the law and is not sustainable. National Treasury, as far back as 2017, came up with an instrument called the Municipal Standard Chart Account (MSCOA), which has about 7 segments. One of them is to ensure that there is financial stability in various municipalities,” he adds.

ALSO READ: Another ailing municipality fails to pay salaries

Dithethe says often municipalities fall into the trap of failing to collect enough revenue, and sometimes there is poor communication between municipalities and consumers.

He is of the view that if municipalities build better communication channels and relationship with residents, most of the problems would be solved.

On Tuesday OFM News reported that two Free State municipalities, Masilonyana and Kopanong, failed to pay workers due to the aforementioned troubles.

OFM News