The KwaZulu-Natal Treasury has raised concerns over municipalities failing to pay pension fund contributions, spotlighting Okhahlamba Local Municipality for a debt exceeding R11.4 million as of December.
Finance MEC Francois Rodgers condemned the non-payment, stating it violates the Municipal Finance Management Act (MFMA) and undermines workers' rights. Treasury spokesperson Nkosikhona Duma labeled the practice as criminal, highlighting its inconsistency with the government's commitment to building an ethical and capable state that prioritizes employee welfare.
“This disregard for workers' rights contradicts the vision of the Provincial Unity Government. MEC Rodgers has urged municipalities to initiate disciplinary action against implicated officials,” Duma said.
The provincial Treasury pledged to monitor the municipality’s response and warned of potential intervention if necessary to ensure accountability and enforce consequence management.