By Teboho Moloi
QWAQWA – Service delivery in the embattled Maluti-a-Phofung Local Municipality has ground to a halt after municipal workers continued their stay-away over delayed July salaries, deepening the municipality’s latest financial crisis.
The unrest follows an announcement by the Office of the Municipal Manager that July salaries could not be processed on time because National Treasury had temporarily withheld equitable share allocations to 16 financially distressed Free State municipalities, including Maluti-a-Phofung and Mangaung Metro.
The affected municipalities are Letsemeng, Kopanong, Mohokare, Xhariep District Municipality, Masilonyana, Tokologo, Matjhabeng, Nala, Dihlabeng, Nketoana, Maluti-a-Phofung, Phumelela, Mantsopa, Ngwathe and Mafube.
On Monday, municipal employees gathered at the municipal offices wearing union regalia, while police maintained a visible presence as tensions mounted. With workers refusing to perform their duties, essential municipal services remain severely disrupted.
The Democratic Alliance (DA) said the salary crisis lays bare years of financial mismanagement and poor governance at Maluti-a-Phofung, warning that the withholding of equitable share funds could have devastating consequences for the municipality’s already fragile finances.
DA caucus leader Alison Oats said while the party sympathises with employees and their families who are bearing the brunt of the salary delays, the crisis should serve as a turning point for the municipality.
“The municipality cannot continue with business as usual. This situation rests squarely with the municipal council,” Oats said.
She accused the Municipal Public Accounts Committee (MPAC), chaired by African Content Movement (ACM) councillor Holley, of failing to enforce financial accountability and implement National Treasury guidelines on investigating unauthorised, irregular, fruitless and wasteful expenditure.
According to Oats, MPAC recommended writing off R3.37 billion in unauthorized, irregular, fruitless and wasteful expenditure, while only three corrective recommendations were made.
“One recommendation was that former mayor Cllr Malekula Melato repay R71,000 spent on wasteful advertising.
However, when council voted on the recommendation, Cllr Mandla Holley did not support it, and the proposal failed,” she alleged.
The African Content Movement, however, called on National Treasury to urgently release the withheld equitable share allocations to ensure municipal employees are paid without further delay.
In a statement issued on July 23, the ACM blamed the crisis on what it described as an overreliance on national government grants and a lack of long-term financial planning.
ACM deputy secretary-general Nomathemba Mopeli said a well-run municipality should not depend on equitable share allocations to pay salaries.
“A properly run government cannot rely on National Treasury equitable share funding to pay workers. Because the governing party has failed to develop sustainable revenue-generating strategies, this should only ever be a temporary solution,” Mopeli said.
She also called for accountability against officials who failed to address National Treasury’s concerns, leading to the withholding of funds.
“The equitable share should be released urgently so workers can support their families, pay school expenses and meet their basic needs.
At the same time, municipal executives must ensure sound financial management systems are put in place to prevent this crisis from happening again,” she said.
The salary impasse has intensified pressure on the already struggling municipality, with residents now facing further interruptions to critical municipal services as workers remain off the job.
