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Ailing Free State municipality fails to pay workers

───   LUCKY NKUYANE 08:23 Thu, 29 Jun 2023

Ailing Free State municipality fails to pay workers | News Article
Many Free State municipalities face cashflow challenges.

The troubled Theunissen-based Masilonyana Local Municipality in the Free State has issued workers with a notice of non-payment.

The troubled municipality's acting Municipal Manager (MM), in a communique to the municipal workers, said the municipality faces cashflow challenges.

The new acting MM, identified as R.S. Motingoe, said in this letter to councillors, directors and the mayor, among others, that the monies for June 2023 will not be paid due to the aforementioned troubling issues. 

The MM, however, indicated in this letter that hopefully salaries will be paid before or after 7 July 2023.

Masilonyana is one of many struggling municipalities in the Free State who do not collect enough revenue for services rendered to its clients. 

Exactly a year ago, this cash-strapped local municipality undertook to pay its workers with food parcels after it failed to pay salaries. Workers received food vouchers worth R1000, which were used at one of the local food retail stores.

According to the communique sent to workers at the time, the vouchers were limited to food stock. Still, they could be used for other essential commodities such as the purchase of prepaid electricity. 

The municipality has also struggled to make payments of salaries to workers on several occasions in the past few years. 

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