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TimesLIVE reports that the Amathole municipality in the Eastern Cape will not be able to pay salaries to councillors, traditional leaders and all staff for four months beginning in February due to strained financial resources.
The non-payment of salaries will affect 1,670 people. In a circular dated 7 January and signed by municipal manager, Thandekile Mnyimba, it was indicated that number of factors had contributed to the municipality’s dire financial situation. It collected less than 25% of its revenue in the first two quarters of the present financial year, and drought and the Covid-19 pandemic had further strained the financial resources. Mnyimba said the overall salary bill consumed the entire equitable share allocation from National Treasury, which was meant for municipal operations and service delivery projects. But, Mnyimba told eNCA that staff needed to report for duty throughout the period as their salaries would be back paid once funds were received. The SA Municipal Workers’ Union (Samwu) described the circular as “unprecedented”, saying it created “panic and uncertainty”.
- Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE