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Kopanong Municipality to pay over contributions to the tune of millions

───   OLEBOGENG MOTSE 12:51 Tue, 10 Jul 2018

Kopanong Municipality to pay over contributions to the tune of millions | News Article
IMAGE: municipalities.co.za

The Kopanong Local Municipality has agreed to pay over pension fund and medical aid contributions to the tune of millions after failing to do so for more than a decade.


This follows a march by disgruntled municipal employees in Trompsburg on June 21, led by the South African Municipal Workers’ Union (Samwu), where a memorandum of demands was handed over to controversial Mayor, Xolile Matwa.

Samwu Provincial Secretary, Thabang Tseuoa, told OFM News the municipality has agreed to pay over medical aid contributions to the tune of R4,1 million as a matter of urgency. They have further committed to taking 40% of the municipality’s equitable share of revenue raised nationally and pay it over towards pension and provident funds. He says they will focus on paying over the contributions of retired employees and those near retirement first. According to the union’s record, the municipality has not paid over their and employees' pension fund contributions to the tune of R60 million, but the municipality says their records indicate the amount is R52 million, which Tseuoa says “is still a lot of money”.

In response to calls for the heads of the Municipal Manager and the Chief Financial Officer to roll for these irregularities, he says the municipality says these individuals have only been in those positions in the last 12 months and are thus not responsible for the irregularities. The union says it preserves its legal right in respect of this.

The financially burdened municipality not only failed to pay over the above-mentioned contributions but did not pay salaries timeously either. There was an agreement made at the Local Labour Forum, where the employer agreed to pay salaries on time, beginning the end of June. Tseoua says they have already defaulted on this agreement, with some salaries only being paid yesterday. This delay comes after OFM News spoke to municipal workers, Monamodi Maphalane and Phutheho Mosunkutu, on the day of the march who described how the delays had impacted their financial standing, with Maphalane saying his bank charges have skyrocketed due to lack of funds in his account when his debit orders go off every month.

The union acknowledges that municipalities do have a tendency to not live up to the agreements they make, but Samwu says it is committed to ensuring that this particular agreement is enforced.


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