This week’s protests in Pretoria, where workers are demanding an 18% salary increase among other grievances, could be a precursor to other strike action at more than 30 municipalities struggling to pay workers’ salaries.
The SA Municipal Workers Union (Samwu) has confirmed that more than 30 municipalities have indicated they were unable to pay worker salaries, leaving employees to fend for themselves while medical aid, funeral policies and pension fund benefits fall into arrears.
Municipalities such as Maluti-a-Phofung Local Municipality, Bojanala District Municipality and Amahlathi Local Municipality last month issued a notice informing workers that their salaries would be delayed.
This was after the National Treasury withheld its equitable funds to the municipalities because of non-compliance with the Municipal Financial Management Act (MFMA) and an absence of office bearers - a mayor, a speaker and a chief whip.
Two municipalities - Dr Ruth Segomotsi Mompati and Madibeng Local Municipalities, which lost R101m and R31m respectively after investing with the now defunct VBS Bank - also owed pension and provident fund contributions.
A Maluti-a-Phofung Municipality worker who was part of those who stayed away from work in protest, Lucas Shongwe said he could not come to work because he did not have money for transport.
“This started in June when the departments of the municipality were paid on different dates.
“Our medical aid and pension fund are no longer covered, and doctors can’t help us when we are sick because the medical aid is in arrears.
“The municipality can’t find a way to resolve the matter because there’s no money,” said Shongwe.
Another employee, Bikie Makhubo, said: “Even the provincial officials who were appointed as administrators failed to resolve the situation.
“The municipality did not inform us that they are not paying our benefits. We agreed that they should not outsource municipality services so we can save money, but they are still doing it.”
But Samwu’s general secretary Koena Ramotlou blamed Treasury, saying they were not taking municipalities seriously.
“Treasury said they want these municipalities to account before they can give them money.
“But we told them that they cannot punish workers for the irresponsibilities of their bosses,” said Ramotlou.
In June Auditor-General Kimi Makwetu revealed that 257 municipalities recorded irregular expenditure amounting to R25.2 billion during the 2017/2018 financial year.
Makwetu also said 34% of the municipalities disclosed that their expenditures were higher than their income, making them unable to honour payments, including those of electricity and water.
“Treasury wants municipalities to make a profit and this is not good because they are turning them into a private company, which will affect the poor communities.
“How do you expect the municipalities in the rural areas to make a profit.
“This model will not work because there are also informal settlements which cannot afford to pay for services. We must look at what was working previously to keep the municipalities running,” said Ramotlou.
Maluti-a-Phofung spokesperson Kedibone Sentle said the municipality was part of a technical team set up with Treasury and Co-operative Governance and Traditional Affairs (Cogta) to develop a recovery action plan.
“We are anticipating that when the equitable share is released to the municipalities, all the outstanding third party payment will be made as customary,” Sentle said.
Bojanala District Municipality spokesperson Archie Babeile said issues relating to third party payment were not brought to the attention of the municipal management, adding that the provincial treasury (North West) released equitable share which will see workers receiving their salaries.
But Babeile could not confirm when the worker’s salaries would be made.
Cogta spokesperson Legadima Leso said the ministry was concerned about media reports related to non-payment of workers by some municipalities, adding they were engaging with provincial departments to establish the veracity of the reports before the necessary measures were provided.