It is very clear that Mafube Local Municipality's affairs are only getting worse by the day and that there is now pretty much nothing left to save.
During June this year, the Municipal Workers’ Pension Fund again approached the Supreme Court to force the municipality to pay R37 795 476.55 to the fund which was deducted from workers' salaries over a long period of time but was never paid over. Even PAYE (employee tax), which was deducted and never paid over, already amounts to more than R26-million while the amount due in terms of outstanding VAT charged on municipal transactions is not known.
After a meeting with SARS, Mafube apparently undertook to repay R2-million per month, but where this money will come from remains a question because the municipality is also obliged to repay a further R2-million per month in terms of its agreement with Eskom. pay.
It has recently come to light that Mafube has not complied with its agreement with Eskom and it is now expected that Eskom will act more forcefully, which will of course be to the detriment of the community.
In his handover report, Mr. Moses Moremi, who served as Administrator at Mafube, also mentioned a further R11-million demanded by suppliers, and admits that the current revenue of the municipality is only R1.7-million per month. Consider that there is already a monthly shortfall of R7.4-million for salaries and in orede to pay this, reliance is placed on grants paid by the central government intended for infrastructure and other projects.
Since Mafube has announced a budget deficit of R172-million for the 2021/2 financial year, it should be very clear that the end is now at hand for a municipality, that is completely bankrupt and only artificially kept alive.
MBF invites residents, business owners and taxpayers who want to get involved in community initiatives to visit our offices at 18A Church Street Frankfort, during our business hours, Mondays to Thursdays from 08h30 to 16h00, Fridays from 08h30 to 12h30. Also contact Marina via WhatsApp at 079 145 4295 or send an email to email@example.com