Employees of cash-strapped Maluti-a-Phofung face going without their July salaries after the municipality said it did not have enough money to meet its monthly payroll.
Municipal manager Mzwakhe Mofokeng informed employees on Wednesday that salaries could not be paid “due to an impasse between Treasury and municipalities, ours included”.
DA councillor Alison Oates said the withheld allocation would have a “catastrophic” effect on the municipality’s cash flow but argued that the council had repeatedly failed to comply with basic financial-management requirements.
The municipality has budgeted about R70-million a month for employee costs and expects to receive approximately R896-million in equitable share funding during the 2026/27 financial year.
Neither the municipality nor Treasury had explained by publication time how much funding had been withheld, which compliance requirement had triggered the decision or when the transfer could be released.
Oates placed responsibility on the municipal council and its municipal public accounts committee (MPAC), which investigates unauthorised, irregular, fruitless and wasteful expenditure.
She said the committee, chaired by African Content Movement councillor Mandla Holley, had, during his tenure, recommended the write-off of about R3.37-billion while proposing only three corrective measures.
Holley said the committee had investigated every matter referred to it and submitted clear recommendations to council.
“The majority of the amount that the DA is referring to is made up of unauthorised expenditure, which are non-cash items,” Holley said.
He said the DA’s representative on MPAC had participated in the investigations and supported the committee’s recommendations.
Oates also alleged that a recommendation requiring former mayor Malefu Melato to repay R71 000 spent on advertising had been defeated in council and accused Holley of helping to block it.
However, an MPAC report seen by Sunday World records Masechaba Lakaje as mayor during the 2023/24 period in which the R71 000 expenditure was flagged.
Melato denied wrongdoing.
Holley said he had abstained when the report reached council. He acknowledged that the abstention was an “error in judgment” and said he later apologised to MPAC and the ACM.
Oates further alleged that two matters involving possible criminal conduct were reported to the Hawks only after the DA lodged complaints in June. Mofokeng said: “Unfortunately, we are facing that challenge of not being able to pay our staff, as we have been banking on the allocation of the National Treasury.
Once we get the money sometime next week from our debtors, we will be able to pay our staff,” said Mofokeng.
- Maluti-a-Phofung municipality cannot pay July salaries due to a funding impasse between Treasury and municipalities.
- The municipality has budgeted R70 million monthly for employee costs and expects R896 million in equitable share funding for 2026/27.
- DA councillor Alison Oates criticized the municipality's financial management and MPAC's handling of unauthorised expenditure write-offs.
- MPAC chair Mandla Holley defended the committee's work but admitted to an "error in judgment" regarding a mayoral expenditure issue.
- Municipal manager Mzwakhe Mofokeng indicated salary payments hinge on receiving funds from National Treasury and debtors soon.
Employees of cash-strapped Maluti-a-
Municipal manager
DA councillor Alison Oates said the withheld allocation would have a “catastrophic” effect on the municipality’s cash flow but argued that the council had repeatedly failed to comply with basic financial-management requirements.
Oates placed responsibility on the municipal council and its municipal public accounts committee (MPAC), which investigates unauthorised, irregular, fruitless and wasteful expenditure.
Holley said the committee had investigated every matter referred to it and submitted clear recommendations to council.
“
He said the DA’s representative on MPAC had participated in the investigations and supported the committee’s recommendations.
Oates also alleged that a recommendation requiring former mayor Malefu Melato to repay R71 000 spent on advertising had been defeated in council and accused Holley of helping to block it.
However, an MPAC report seen by
Melato denied wrongdoing.
Holley said he had abstained when the report reached council. He acknowledged that the abstention was an “error in judgment” and said he later apologised to MPAC and the ACM.
Oates further alleged that two matters involving possible criminal conduct were reported to the Hawks only after the DA lodged complaints in June.
Once we get the money sometime next week from our debtors, we will be able to pay our staff,” said
