No pay for workers for 4 months, says bankrupt Eastern Cape municipality

[schumi]

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.

Equitable share

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

 

[Toastmaster]

I'm so shocked. Sjoe

 

[Pineapple Smurf]

Shame

 

[Willem_Wikkelspies]

Amathole District Municipality - Wikipedia

en.m.wikipedia.org

 

[supersunbird]

Amathole District Municipality - Wikipedia

en.m.wikipedia.org

Of the 1.6 million people living there, 45% are under the age of 20? Maybe the info is wrong or maybe that is the reason for this situation.

 

[R13...]

I wonder if that affects councillors and the executive

 

[supersunbird]

I wonder if that affects councillors and the executive

Second paragraph of link:

 

[gertvanjoe]

Just a shithole shitholing, nothing to see, moving along.

 

[supersunbird]

I see they go on about fixes like retrenchments... but nothing to improve the 25% revenue collection rate?

And Tshwane gets put under administration by the ANC with the weakest of reasons, while this place can fall apart and see no administration?

 

[Binary Bark]

Shame

^^

 

[Vrotappel]

Vote ANC - win stupid prices. No pay, no work which means the death spiral will continue as the collection rate will drop further.

 

[Deadmanza]

Its OK, hopefully they put some of their stolen loot away for a rainy day.

 

[TelkomUseless]

Vote ANC - win stupid prices. No pay, no work which means the death spiral will continue as the collection rate will drop further.

Of course.. keep voting ANC. They got the voter's backs /s

 

[w1z4rd]

Those workers should find out why the finances are "restrained" and who is responsible for that. They have a budget... what happened to that? I would say this would impact service delivery, but thats nearly non-existent here.

 

[R13...]

Interesting infograph on how municipalities spend their money. I think most of the really dysfunctional ones spend nearly all of it on salaries.

 

[Hemi300c]

I see they go on about fixes like retrenchments... but nothing to improve the 25% revenue collection rate?

And Tshwane gets put under administration by the ANC with the weakest of reasons, while this place can fall apart and see no administration?

Exactly this.

Buch of anc cvnts and their supporters are no better.

 

[eg2505]

vote ANC and enjoy the fun times,

 

[MikeaMatrix]

About time working for the government is no longer seen as being on the gravy train.
Salaries need to come back down to earth.

 

[Thugscub]

Stolen their own salaries.

 

[konfab]

Socialism, running out of other people's money one municipality at a time.

This type of thing is going to be the death of the ANC.