This week, reportedly, the Emfuleni Local Municipality released a memorandum informing employees, councillors and local labour unions that salaries for February will be delayed.
The municipality said this is due to challenges with its accounts being attached.
WHY IS EMFULENI MUNICIPALITY STRUGGLING TO PAY SALARIES?
According to reports, the municipality’s bank account was attached by Rand Water on 3 February 2022 after the municipality failed to honour it’s payment agreement to its R1.5 billion debt.
Last year, Eskom also attached the municipality’s bank account for failing to pay on their R3.5 billion debt.
The Democratic Alliance in Gauteng said the delay in the payment of salaries will place a serious financial burden on employees and councillors, they will also suffer additional penalties on returned debit orders.
The delay will also negatively affect employees’ and councillors’ payments to their medical aids, pension funds and SARS contributions.
The party said there is also a risk that employees may embark on a strike in protest which will bring service delivery to a complete halt.
“Although the municipality is on the brink of financial collapse, they are still going ahead with making political appointments that will cost the municipality R15 million a year.
“The ANC-led municipality has no interest in turning things around and bringing sound financial management to improve service delivery for the people of Emfuleni.”
DA in Gauteng
The DA said it will continue to engage and put pressure on the MEC for Cogta, Lebogang Maile, to resolve the ongoing debacle.
“It is the responsibility of the Provincial Cogta which deployed administrators to the municipality to deal with financial control and service delivery as prioritised per Section 139 1(b). The attachments of the municipal account has been an ongoing battle since 2019, and to date, we are still dealing with the same problem. MEC Maile must provide decisive leadership to get the municipality back on track.”