Delayed Treasury payments hamper services in the FTLM

BURGERSFORT/APEL

The Fetakgomo Tubatse Local Municipality (FTLM) confirmed on July 23 that it has received its Local Government Equitable Share (LGES) allocation. The municipality released a media statement on its official Facebook Page confirming the news. In the statement, the municipality once again, did not reveal the reasons that led to the funds being withheld.

According to the National Treasury, the withholding of funds was aimed at improving fiscal discipline, ensuring public money is managed responsibly, and compelling municipalities to address unauthorised, irregular, fruitless and wasteful expenditure.

The Treasury said it took the decision in terms of Section 216(2) of the Constitution and Section 38 of the Municipal Finance Management Act, which empowers the department to withhold transfers from municipalities that repeatedly fail to comply with financial management requirements.

The withheld funds have allegedly dealt the municipality and its clients a major blow, security officials’ payments were delayed by weeks while municipal workers also received payments later than usual times.

A security officer based at one of the municipal sites at Ga-Nkwana said she was supposed to have been paid on July 7, but her payment was only processed on July 24 after the municipality received the funds. The officer and her crew alleged that the delays in payments from the municipality to their companies affects their families badly.

“We were expected to report to work, deliver excellent service, and keep a smile while unpaid,” complained the officer who chose to remain anonymous. She urged the security companies and the FTLM to both get their houses in order.

FTLM was the only municipality in Sekhukhune affected by the decision. It was one of five municipalities in Limpopo and one of 69 nationwide whose LGES allocations were withheld.
On July 23, the FTLM said it welcomed the release of its equitable share allocation by the National Treasury after successful engagements with the department.

“The municipality worked closely with the National Treasury to address all the matters that had been raised. Following these engagements, the National Treasury was satisfied with the municipality’s clarifications and approved the release of its equitable share allocation,” said the municipality in a media statement.