The Congress of South African Trade Unions (COSATU) has raised concerns about the non-payment of workers’ pension fund contributions at the Ditsobotla Local Municipality in the North West.
The union said it was made aware about this by its affiliate at the municipality, South African Municipal Workers Union.
According to COSATU, the troubled municipality has allegedly failed to pay the contributions for 14 months.
The union spokesperson, Zanele Sabela, has warned that the non-payment will have a dire consequence on the workers, especially when they retire.
“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,” said Sabela.
The Lichtenburg-based municipality has for many years found itself in the news, following allegations of the employment of senior officials without qualifications, failure to pay workers salaries, and among others, was led by two mayors and two municipal mayors.
According to Sabela, workers were owed salaries for three whole months in August last year, 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,” added Sabela.
Furthermore, Sabela called on the Department of Cooperative Governance and Traditional Affairs as well as Treasury to intervene in the matter and ensure that the “municipality brings workers’ pension fund payments to date immediately.”
