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

schumi

Honorary Master
Joined
Mar 26, 2010
Messages
24,086
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
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
54,511
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?
 

Deadmanza

Honorary Master
Joined
Sep 13, 2013
Messages
11,984
Its OK, hopefully they put some of their stolen loot away for a rainy day.
 

w1z4rd

Karmic Sangoma
Joined
Jan 17, 2005
Messages
48,256
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.
 

Hemi300c

Honorary Master
Joined
Dec 15, 2009
Messages
22,557
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.
 

MikeaMatrix

Well-Known Member
Joined
Jul 7, 2020
Messages
146
About time working for the government is no longer seen as being on the gravy train.
Salaries need to come back down to earth.
 
Top