Question NW1919 to the Minister of Finance
03 June 2022 - NW1919
Groenewald, Mr IM to ask the Minister of Finance
(1)What total number of municipalities in each province, (a) in each of the past five financial years and (b) from 1 April 2022 to date could (i) not pay and/or (ii) only partly pay salaries for (aa) one month, (bb) two to six months, or parts thereof and (cc) more than six months; (2) whether he will make a statement on the matter?
Reply:
(1)(a)(b)(i)(ii)(aa)(bb)(cc) The attached annexure provides the detail of the number of municipalities over the past five years that did not pay or partially paid salaries per province per year. It further distinguishes which municipalities within the two categories did not pay for one month or two to six months or more than six months.
(2) No, the Minister will not make/issue a statement in this regard, the onus rests with the Municipal Council to ensure all financial obligations are honoured timeously. The design of the Local Government Fiscal System does not allow any Organ of State to “bail-out” a municipality should they find themselves in this position. This by implication means that a municipality is required by law to adopt a funded budget as per section 18 of the Municipal Finance Management Act, 2003 (ACT NO. 56 of 2003), MFMA. A funded budget will consist of any financial obligation due by the municipality which includes salary obligations.