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Financial recovery plan part of turnaround strategy

FREE State cooperative governance and traditional affairs deputy communications director Senne Bogatsu responds to questions regarding the salaries poser in the Nala local municipality:

Question: Is the department prepared to assist the municipality to pay its salaries?

Answer: The request has not been approved by the department.

Q: What does that mean to its employees? Will salaries be paid by the municipality from its own financial resources?

A: Equitable share resulting from savings made from the cost-containment measures implemented as part of the financial recovery plan towards ensuring sustainability.

The financial recovery plan is part of the turnarounds strategy of the municipality which is being implemented currently.

The salaries problem was only applicable to this month, which is the second last month of the next equitable share allocation.

Q: Are there any guarantees that in future workers will be paid without assistance?

A: Yes, as discussed above.

Q: Is the municipality going to be placed under administration?

A: Not at this stage, there are already indications of positive change as a result of the turnaround strategy that is being implemented.

Q: What are you doing as the provincial government to remedy the situation in Nala?

A: This is being attended to.

Following the presentation of the report, an acting municipal manager has been appointed to provide stability in the municipality and implement a turnaround strategy that includes short and long-term solutions.

Q: If the municipality can't generate income what happens to that municipality?

A: The municipality will start billing next week and this should bring in income.

In recent community meetings challenges facing the municipality, especially billing, (were discussed). The community was briefed on the billing which starts from March 1.

The community has bought into this and are eagerly awaiting their monthly bills to pay for services. There has been much positive response from the community and employees towards ensuring that the municipality delivers on its mandate and serves the community.

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