Central SA
Free State municipality to recoup owed monies─── LUCKY NKUYANE 10:06 Wed, 26 Oct 2022
The cash-strapped Trompsburg-based Kopanong Local Municipality in the Free State has threatened to go after businesses and residents who fail to pay for rendered services.
The municipality owes its over 450 workers their salaries for September, with plans to pay for October looking bleak.
ALSO READ: Free State municipality yet to pay over 450 workers
Municipal spokesperson, Solomzi Phama, tells OFM News that all bets are off to try to recoup millions owed to the municipality by businesses and others in revenue. He says as of Wednesday 26 October 2022 the municipal officials will embark on a rigorous plan to try to recoup this money owed to the municipality by the aforementioned parties.
On Monday 24 October 2022, workers staged a protest at the headquarters of the municipality in Trompsburg over unpaid salaries. Workers were evacuated from the head office in Trompsburg by their colleagues who have not received their salaries for September 2022.
ALSO READ: Kopanong workers strike over unpaid salaries
Earlier this year, in February, the municipality once again struggled to pay its workers after cash flow issues. 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.
ALSO READ: FS municipality yet again fails to pay workers salary
Following the cash flow issues at the municipality, which at some point has led to failure to keep up with its debt to service providers, the municipality lashed out at the government for owing it millions of rands in rates and taxes. The municipality said it was owed R45 million by the government in rates and taxes.
According to the speaker of the council, Jerry Moitse, the national government owes the municipality a sum of R25 million, and the remainder is owed by the provincial departments. He said on numerous occasions municipalities are dragged to the committees to explain their shortcomings but yet the same government that always preaches good governance fails to adhere to its own rules and act in accordance.
“Since 2016, we have been struggling to get the provincial and national departments to settle their accounts. There has been no change so far. It is very worrying to always hear how Kopanong Municipality has no money but it is the same province that owes the council a lot of money. The committee promised to give feedback within seven days, and six months later nothing has happened. With R45 million, Kopanong can cover five months’ salaries and then the council does not have to use projects' funds to pay salaries,” Moitse said.
