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Tzaneen Municipality in Financial Crisis |
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Greater Tzaneen Municipality in Financial Crisis, due to corruption and nepotism
SAMWU PRESS STATEMENT
05 July 2010.
SAMWU the largest Trade Union in the Greater Tzaneen municipality has observed the financial circus in the Municipality with discontent, for the last three years. Despite unilateral efforts by the Municipality to come up with so called Financial Recovery Plans (FRP).
Instead of targeting corruption and nepotism the FRP targeted employees. At the end of June shockingly, some employees salaries were not paid, workers irrespective of their union affiliation were disappointed and employee morale was severely impacted, as their debit orders did not go through, due to the financial crisis in the Municipality.
The problem started three years ago, when the Municipality begun to rely on overdrafts and used conditional grants allocated by National Government to fund operational expenditure, a concern constantly raised by the Auditor General but to no avail.
The Municipality made use of R32million for operational use, which was supposed to be used for conditional grants. More than R3million was wasted to pay legal fees, to dismiss two senior employees and close to a million rand lost due to fraud, by one employee who was responsible for cash deposits. Despite forensic audit recommendations to recover the money, the Municipality turned a blind eye.
SAMWU has conducted its own investigations and came to the conclusion that corruption and maladministration play an important role in the awarding of tenders to cronies, some are not even advertised, while the word competition does not exist in the Municipality’s vocabulary, the same companies benefit over and over again and continue to rake in millions. Some of the contracts awarded have expired years ago and operate on a month to month basis, why they are not advertised is still a mystery. There are rumors that the
Municipality cannot afford its monthly wage bill and relies on some companies to pay councilors and employees.
The technical problem for not paying salaries, confirms breach of contract and now questions are raised as creditors are not being paid. Shockingly the problem seems to be just the tip of the iceberg. There is no political leadership in the Municipality, as challenges are not addressed and as a result affect service delivery to communities.
SAMWU will continue to raise these concern and calls for the Municipality to be placed under administration, as the Greater Tzaneen Municipality has indeed collapsed.
For comment please contact Kenny Makhubele, SAMWU’s Branch Secretary on 071 296 9045
Issued by;
Tahir Sema.
South African Municipal Workers' Union of COSATU.
National Media and Publicity Officer.
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Office: 011-331 0333.
Cell: 0829403403.
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Worker's News April 2008 PART 1 (514)
