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IOL News reports that municipal managers in charge of municipalities that owe pension funds outstanding contributions could face criminal charges should they continue failing to comply with their statutory obligations.
The National Treasury has issued a stern warning to municipal bosses – including some of the country’s biggest municipalities – that they might be guilty of financial misconduct. In the document dated 6 December 2024, Jan Hattingh, Treasury’s chief director responsible for local government budget analysis, noted: “It has been observed that municipalities have defaulted on their responsibility to ensure that third party payment obligations are met, despite deductions being made from employees’ salaries.” He pointed out that the failure to pay over the deductions put several municipal employees in a very unfortunate situation where they have no funds in their pension fund accounts despite salary deductions having been made. Hattingh urged municipalities to ensure that measures were in place so that contributions were paid over to the pension funds. Hattingh advised municipalities with outstanding pension fund contributions to ensure that any outstanding payments were paid over at the latest by the end of the 2024/25 financial year (i.e. June 2025). Municipalities that failed to do so would face punitive measures being implemented against them. According to Finance Minister Enoch Godongwana, as of the end of March last year, municipalities’ arrear contributions stood at R1.4bn.
- Read the full original of the report in the above regard by Loyiso Sidimba at IOL News
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