According to the mayor of the cash-strapped local municipality, Xolani Tseletsele, the talks are to help the municipality recover from its financial woes.

The financial troubles at the municipality have since made it difficult for the municipality to render services to its residents for the past few years.

He said the talks are also about how they can help the municipality with its financial viability, strategies and systems. Tseletsele said the municipality is seated with a problem of being overstuffed whilst the salary bill is also bloated.

"Since we have been in council we have never employed any new staff member or increased our staff. What we are working on now is to at least reduce the challenges related to being over-staffed because our salary bill is too high when you compare the salary bill with the revenue collection. We are unable to raise enough revenue to pay salaries. Our management is working on those issues," Tseletsele said.

They also hope the council will be assisted in advertising positions of senior managers, including the directors, into permanent positions. Tseletsele hopes they will have a new Chief Financial Officer (CFO) appointed on a contractual basis, and also a Municipal Manager (MM).

According to the ousted Free State 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: Free State municipality's bill is R12,2m but it collects R2,5m

However, Ntombela did mention that the municipality is battling the historic administrative issues which have since caused it financial distress. OFM News has previously reported how this municipality had failed to pay its workers.

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

In two instances, it led to its bank account being attached following Free State High Court orders.

ALSO READ: Kopanong account attachment uplifted

In 2022, the municipal council speaker, Jerry Moitse, told OFM News that the municipality was owed R45 million by the government in rates and taxes.

Moitse said that the national government owed 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 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.

ALSO READ: Government owes Free State municipality millions

This is the same municipality which was hit by a disaster when the mine wall collapsed on 11 September 2022. Houses, cars, and infrastructure were destroyed by the mudslide which came from the mine dam.

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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However, 5 months after the disaster struck the small community, residents are still picking up pieces of what was left to rebuild their lives.

OFM News