The municipality is not bankrupt, spokesperson Mncedisi Boma says. Speaking to Grocott's Mail this morning, Boma also said rumours that the provincial government would intervene were not true.
The municipality is not bankrupt, spokesperson Mncedisi Boma says. Speaking to Grocott's Mail this morning, Boma also said rumours that the provincial government would intervene were not true.
"It has not reached a stage of intervention," Boma said. "We can safely say that the municipality is not bankrupt."
Drama erupted outside the city hall on Friday 25 October, where unpaid workers gathered as rumours rapidly spread that the municipality had no money in the bank.
They were addressed by the Mayor, who assured them they would be paid.
Meanwhile, First National Bank has strongly denied that Makana Municipality's failure to pay staff and service-providers this month had anything to do with the bank's systems.
On Friday acting municipal manager Thembinkosi Myalato told Grocott's Mail there had been a technical glitch with the bank that had delayed payments.
In an email received by Grocott's Mail this morning, however, Anrie Spangenberg, Regional Director, FNB Public Sector Banking, said, "FNB can confirm that it didn’t receive any notification regarding a potential systems glitch in the Makana area. Our banking systems continue to run efficiently."
Boma also contradicted Myalato's attribution of the payment problems to First National Bank.
"We don't have a problem with our bank," Boma told Grocott's Mail this morning.
The Mayor is currently locked in discussions with municipal manager Pravine Naidoo and acting chief financial officer Marius Crouse.
Yesterday Mayor Zamuxolo Peter confirmed there were serious cash-flow problems in the municipality.
"The point is that it is clear there is a serious challenge financially that has to be looked at. I will meet with the municipal manager and the acting CFO to discuss in detail the financial status of the municipality," said the Mayor during his address to Council yesterday.
A special council meeting scheduled to start at 10am yesterday was adjourned after Peter and Naidoo had to address disgruntled municipal workers.
For many municipal staff, their last productive day was Thursday.
Since then, employees' fortunes have been mixed, with some being paid, some receiving part of their salaries and some not getting paid at all.
Employees from the municipality's cleansing section and other departments flocked to the city hall this morning for further meetings with city management.
SA Municipal Workers Union secretary Lindelwa Faltein told Grocott's Mail that some workers had been paid on Saturday.
At yesterday's Special Council Meeting the Mayor said they had managed to extract payment from some creditors. This had made it possible to pay some staff, the Mayor said.
On Friday the Mayor promised that while directors and managers might have to wait for their salaries, other Makana employees would be paid.
Africa Boso, spokesperson for the auditor general's office said that his office does not comment on such matters.
