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Free State municipality's bill is R12,2m but it collects R2,5m

───   LUCKY NKUYANE 10:49 Wed, 30 Nov 2022

Free State municipality's bill is R12,2m but it collects R2,5m | News Article

The cash-strapped, Trompsburg-based Kopanong Local Municipality in the Free State is in a dire financial position, allegedly worse than thought before.

According to Premier Sisi Ntombela, the municipality has a month-to-month salary bill of at least R12,2 million whereas they can only collect a mere R2,5 million in revenue. She mentioned that this troubled municipality owes the South African Revenue Services (SARS), Eskom, and Bloem Water over R500 million.

ALSO READ: Kopanong account attachment uplifted

However, premier Ntombela did mention that the municipality is battling the historic administrative issues which have since caused it financial distress. OFM News has reported how this municipality had failed to pay its workers. In two instances, it led to its bank account being attached following the Free State High Court judgment.

ALSO READ: Free State municipality yet to pay over 450 workers

“They are using the government’s conditional grant which should have created jobs for the people and they are using it to pay the salaries. And it’s a legacy. The mayor and councillors are trying everything. They don’t even have section 56 managers because they can’t pay them,” she adds.

Premier Ntombela was a guest speaker at the Public Service Commission’s (PSC) event on Tuesday 29 November 2022 held in Bloemfontein. The Kopanong Municipality is among several municipalities in the province which survives mainly with the national government's equitable share. They don’t have enough revenue from services rendered due to a large population of indigenous people which the municipality has the responsibility of providing with clean water and electricity, amongst others.

The municipality also owes over R20 million to the pension fund of the South African Municipal Workers Union (Samwu), which emanates from 2012.

This is the same municipality which was hit by a disaster on 11 September 2022, when a mine dam wall collapsed at Jagersfontein and the mudslide destroyed houses, cars, and infrastructure.

ALSO READ: Houses, cars swept away by strong stream of water in Free State town | WATCH

The disaster also claimed the lives of two people, with one still missing. Scores were injured and over 200 people were displaced or homeless after more than 100 houses were destroyed.

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