Labour federation Cosatu, a key ally of the governing ANC, is threatening legal action over “financially distressed” North West municipalities struggling to pay worker salaries.
“We call on these municipalities to pay workers what is due to them, or we will work with Samwu [SA Municipal Workers Union] to take them to court,” Cosatu acting spokesperson Matthew Parks said.
He said the Ditsobotla, Mahikeng, Tswaing, Ngaka Modiri Molema, Madibeng, JB Marks, Mamusa and Lekwa Tamame municipalities “routinely default” on paying workers’ salaries and third party deductions owed to them.
“Over the past year alone, the number of delinquent municipalities defaulting on paying their employees has risen from 20 in four provinces to 27 in six provinces nationally. These municipalities are failing workers who are already dealing with a cost-of-living crisis that has been made worse by the current economic trends that have unleashed very harsh conditions for workers,” Parks said.
Most of the country’s 257 municipalities have been run into the ground due to malfeasance, corruption, maladministration, corruption, looting, and lack skilled personnel, including engineers, to turn them around.
In May, auditor-general Tsakani Maluleke said for the 2021/22 financial year only 38 of the country’s 257 municipalities received clean audits.
The municipalities had an estimated expenditure budget of R487.12bn to operate and deliver services. Of the R487.12bn, R262.9bn was allocated to metros. Intermediate cities received R105.3bn, local municipalities R83.2bn and district municipalities R35.6bn.
Municipal entities had a separate budget amounting to R52.01bn. Maluleke said the municipalities racked up R4.74bn in fruitless and wasteful expenditure during the period under review.
Maluleke noted that the salary bill of most municipalities was so significant that it “crowds out spending”. The municipalities spent R121.47bn on salaries and wages during the year under review: “Service delivery suffers when you spend so much money on salaries and wages.”
Water and sanitation minister Senzo Mchunu recently said that municipalities owed water boards R16.7bn, while municipalities and the water boards owed the department (which has its own water trading entity) R17.4bn.
Municipalities will soon get respite from repaying billions of rand owed to Eskom after a decision by the Treasury to have some of the debt written off over three years. Municipalities owe Eskom about R57bn.
Parks said Cosatu is disturbed by the “apathetic and indifferent attitude of both the national and North West provincial government, in particular Cogta [co-operative governance & traditional affairs] and Salga [SA Local Government Association], if this still exist, on this matter”.
“The federation has been calling on the government to come out with a turnaround strategy to revive about 90% of municipalities that are experiencing financial distress for more than five years,” he said.
“The auditor-general has been warning that the accountability for financial and performance management continues to worsen in most municipalities. Numerous reports show that many municipalities have been failing to account accurately for the financial transactions they have carried out and the money entrusted to them. Many of these municipalities have previously been placed under administration with little tangible progress to show for it.”
“Government needs to act now and intervene in this crisis across the North West. Cosatu will be working with Samwu in these municipalities and in the province to put pressure and compel the responsible mayors, MECs and premiers to act and pay these municipal workers what is owed to them. Such actions may include protests, pickets, the occupation of offices of these politicians and if need be, to take these municipalities to court to compel them to pay them what is owed to these workers,” Parks said.
Cogta, Salga and the Treasury did not respond immediately to requests for comment.
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