Bankrupt E Cape municipality fails to pay employees

SABC News bankruptcy amahlathi 300x169 - Bankrupt E Cape municipality fails to pay employees

Over 300 workers at Stutterheim based in Amahlathi Local Municipality in the Eastern Cape haven’t received their salaries as the municipality is bankrupt.

It has been failing to generate income due to five months of protests at Stutterheim. Cathcart and Keiskammahoek have also been affected negatively.

The situation in the municipality is worsened by alleged corruption and loose financial controls. Thembela Magwanqana of the South African Municipal Workers’ Union and Louis Mostert of Independent Municipal & Allied Trade Union say they are appalled by the situation.

“We are not working until the management comes and address us because there are things that the workers want to be cleared by the management not from the communication manager. People are worried about the things they’re supposed to be doing as they were supposed to be paid today. A lot of people are not motivated and salaries are not being paid at this stage. There has been a compromise salary offer which we feel will divide the labour force.”

Amahlathi Mayor Egness Hobo says they’re not sure when the salaries will be paid.

“In the meantime the administration is looking for resources to pay the employees. Now we are waiting for the report, we are waiting for the MM. There’s no indication for the date of payment.”

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