The Congress of South African Trade Unions (COSATU) commends its Affiliate, the South African Municipal Workers Union (SAMWU), for raising the alarm on the non-payment of workers’ pension fund contributions at the Ditsobotla Local Municipality in the North West.
The municipality notorious for making headlines for all the wrong reasons, has reportedly not paid workers’ pension fund contributions for 14 months. This is playing with fire as it robs workers of the compounding effect that would ultimately ensure they do not retire in poverty. In addition, workers’ family members would not be able to claim the death benefit should the unthinkable happen, if some contributions are outstanding. It also interferes with workers’ ability to access their savings under the Two-Pot Pension regime that was primarily intended to alleviate their financial pressures.
Workers have borne the brunt of maladministration in the Ditsobotla Local Municipality for far too long. In August last year, workers were owed salaries for three whole months, after Treasury withheld the municipality’s equitable share grant to force financial compliance, including paying creditors such as Eskom, waterboards, etc.
At the end of the 2024/25 financial year, Ditsobotla was effectively bankrupt as its liabilities exceeded its assets by a whooping R295 million. It was placed under national administration last September, after being placed under provincial administration eight separate times did not curb maladministration.
It is distressing to discover that even under national administration, Ditsobotla continues to default on pension fund contributions and other statutory payments. Municipalities are counted among the worst three defaulting sectors when it comes to pension fund contribution payments, alongside the security and automotive sectors.
COSATU calls on the Department of Cooperative Governance and Traditional Affairs as well as Treasury to ensure the Ditsobotla Municipality brings workers’ pension fund payments to date immediately. Why else is the municipality under administration if the rotten status quo maintains.
Furthermore, the Department must put systems in place to ensure the municipality delivers services to the citizens of Ditsobotla. A long-term solution is needed for this poster boy of financial delinquency as it has already set a national record for being placed under administration four times in the past decade with little improvement for its employees or its residents.
Issued by COSATU
Zanele Sabela (COSATU Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za
