West Rand cannot pay wages

Brian Sokutu

The West Rand District Municipality, which invested an estimated R77 million in the troubled VBS Mutual Bank in contravention of National Treasury warnings, is sitting on a bankruptcy time bomb, unable to pay employee salaries.

The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) yesterday expressed concern at its financial state, with the DA calling for the immediate suspension of municipal manager Moroashike David Mokoena and chief financial officer Romeo Mohaudi, who are under Gauteng government investigation for their role in the VBS investment.

DA Gauteng West Rand regional chairperson Evert du Plessis called on Cooperative Governance and Traditional Affairs (Cogta) Minister Zweli Mkhize to “urgently place the West Rand District Municipality under administration”.

“More than 100 municipal employees have not received their October salaries and their medical aid and pension contributions are three months in arrears.

“Among those who have not yet been paid are the mayor, councillors, executive managers and supervisors,” said Du Plessis, adding: “There is no indication when the employees will be paid.”

So desperate are employees for their salaries, that this week they stormed the municipal offices and held management and councillors hostage for more than 10 hours. The council applied for an early payment of equitable share from the Gauteng government, which was denied.

The EFF said it was “disgusted and equally horrified” about the potential threat to their councillors held hostage “due to the financially reckless and bankrupt West Rand District Municipality”.

It said the municipality was due to receive R346 million conditional grants from national and provincial treasuries, “but as usual that money will be looted”.

It urged police agencies like the Hawks and the Asset Forfeiture Unit to “fast track retrieving the money that was stolen”.