- Mar 26, 2010
The cash-strapped Amathole District Municipality in the Eastern Cape says it will not pay salaries to its 1 670 employees for four months due to "strained financial resources".
This was contained in a circular, which municipal manager Thandekile Mnyimba drafted, to all employees, councillors and traditional leaders on the municipality's payroll.
Mnyimba said workers would not be paid for February, April, May and June and advised them to consult their creditors.
Amathole District Municipality spokesperson Nonceba Madikizela-Vuso confirmed that the municipality could not afford to foot the monthly salary bill of R65 million.
According to Madikizela-Vuso, workers will receive their March salaries when the municipality receives its equitable share from National Treasury. However, the money will not be enough to cover other months.
Mnyimba said one of the reasons for the financial crisis was low revenue collection. The municipality only collected 25% revenue in the first two quarters of the 2020/21 financial year.
More at: https://www.news24.com/news24/South...s-bankrupt-eastern-cape-municipality-20210111