Stubborn municipalities won’t get money from Treasury – Now Bojanala borrows R50 million to pay salaries

MEC for Finance in the North West, Motlalepule Rosho vowed to continue withholding Equitable Shares for nine municipalities due to non-compliant. Rosho said those municipalities are on a shocking financial state and Treasury won’t release any money until they account and come up with better ways to handle their finances. Rosho said some municipalities responded to her call but their plans and explanations were not satisfying. Tabling her Departmental Budget Speech yesterday at the Provincial Legislature, Rosho said some municipalities are stubborn and they are ignoring her plea. She said her department engaged National Treasury and those municipalities won’t get any money. Now, most are broke and can’t pay salaries and service providers.
Bojanala Platinum District Municipality did not pay its employees yesterday and an urgent council meeting was held. The council took a resolution to borrow R50 million.

Municipal spokesperson, Archie Babeile said the municipality has been in constant communication with both the National and Provincial Treasuries to address concerns relating to non-compliance.

“There were also directives issued by the office of MEC for Finance during the engagement session held on the 23rd July 2019 held at Mahikeng. The engagement session and the directives thereof had necessitated the special council meeting to address the impasse of delaying the release of the Equitable Share.”

“The Council had convened a special meeting, the 25th July 2019 to
adopt resolutions in line with the directives of the MEC as well as contingency measurers for Operational Budget while awaiting the release of Equitable Share.
As a contingency measure, the council had invoked Section 45 of MFMA to acquire a short-term loan for overdraft in the amount of R50 million for operational issues. The council had resolved to comply with the provisions of section 45 (4) of MFMA to repay the short-term loan within the current financial year,” said Babeile.

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