Broke FS municipality to pay workers with food vouchers

The municipality is one of three which have asked Cogta for bailouts, despite failing to submit its financials to the Auditor-General.

FS municipality offering food vouchers to unpaid workers

Photo: iStock

The cash-strapped Theunissen-based Masilonyana Municipality in the Free State will give workers food vouchers following the non-payment of their salaries for May.

The municipality has sent staff a communique informing workers that they would receive R1000 food vouchers to be used at one of the local food retailers.

According to the communique, the vouchers are limited to food stock, but can be used for other important commodities such as the purchase of prepaid electricity.

Workers, including councillors, were set to access these vouchers from Friday 17 June around 15h00 until Wednesday 22 June 2022 at 18h00.

Workers have not been paid for May due to cash flow issues and the municipality is yet to comment on OFM News’ inquiry.

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According to the Auditor-General (AG), Tsakani Maluleke, Masilonyana is among three Free State municipalities which failed to account for how they spend their money.

Also Read: AG’s Report: Municipal finances a dumpster fire, while consultants laugh all the way to the bank

The decision to give workers food vouchers was taken following a meeting with workers’ unions to mitigate the effects of delayed May 2022 salaries.

However, in a second letter sent to workers in relation to the payment of salaries, the Acting Municipal Manager, Lungile Mokoteli, says the municipality is working towards speeding up the process of fixing this and trying to have salaries paid as soon as possible.

Around the same time last year, the municipality approached the department of Cooperative Governance (Cogta) for a bailout after it also failed to pay its workers. However, the Head of the Department (HOD), Mokete Duma, said the municipality would not receive any bailouts due to depleted funds aimed at assisting municipalities.

In 2022, the municipality is again part of eleven cash-strapped Free State municipalities which have reportedly approached the provincial departments of Treasury and Cogta for bailouts, merely two months after the 2021/22 financial year-end.

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This article originally appeared on OFM News, and has been republished with permission. The original can be viewed here.