Public servants 'drown in debt
THREE out of five public servants who have sought assistance from the Consumer Fair are drowning in debt as a result of each having more than two garnishee orders.
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Consumer Fair chairman Thami Bolani disclosed this week that more than 60% of the public servants who had recently sought financial counselling from his nonprofit organisation have more than two garnishee orders.
Bolani said teachers were the worst affected. But Cosatu general secretary Zwelinzima Vavi said private sector labourers were also hard hit to the extent that their entire salaries were "swallowed" by garnishee orders.
Simply put, a garnishee order is the common term used to describe an emoluments attachment order, which gives a credit provider the right to dock wages or salary in repayment of a debt.
"Garnishee orders were the fuel behind the Marikana strikes because creditors go into bank accounts of miners and leave them with a zero balance," Vavi said.
"We can't continue having a situation where mashonisas (loan sharks, or black market micro-lenders) have money readily available for lending to anyone, but it later becomes difficult for employees to repay the loan and they end up being hit with garnishee orders."
Speaking at the Nedbank and Mail & Guardian Critical Thinking Forum, outspoken academic and political commentator Mamphela Ramphele blamed the government and trade unions for failing to ensure that public servants, including teachers, earned a decent income, which she said could help prevent their falling into debt traps.
Ramphele said the government and unions were well aware of the financial troubles faced by public servants but were not doing anything.
"The government and unions use employees who are in financial distress as voting fodder instead of acting as a support structure," she said.
"This is why most teachers were demoralised in attending to their jobs," Ramphele said.
South African Democratic Teachers' Union secretary Mugwena Maluleke said they were aware that teachers were badly indebted.
Most teachers earn between R150000 and R380000 a year. Naptosa's Ezra Ramasehla said teachers are mostly in debt because of loan sharks.
"Teachers need a lot of financial literacy and we are getting financial institutions to help them," Ramasehla said.
Maluleke said the union had not been successful because teachers were not willing to open up about their financial problems.
"No one wants people to know they are indebted," Maluleke said.
"It is easier when we get the institutions to help them than doing it ourselves."
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SebolaNtimetseAdikateMoketla
Loan sharks work for the WestRevenging against political defeat
Once political victory was attained
indebt the Black mass
garnishes and bad credit reports
to disempower the Black majority
they cant buy houses, cars etc but they say they rule SA
ensuring finacial ability's only in few's hands
Zwelinzima Vavi!!!!!!!!!!!!!!!!!!!!!!!!!!!
take it back
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TLekota
This Mamphela Ramphela lady just go tjatjarag when she speak. I will start hate being black everything bad is black, black market, blacklisting, there will be black collarcrime soon. Maybe tender chopping is blackcollarcrime.Report Abuse
TLekota
@ Sebola, who works for the East. Mugabe? Look east policy?Haai Suka maan, learn to manage your money. Those Marikana guys should have learnt to manage their lives rather than complaining I earn R4000 and I maintain 8 people. Hell the employs you not the 8 people behind you. What do u think of someone who will borrow money to buy booze or entertain nyatsi.
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MGEEZ
Financial literacy and exercising self restraint is required here.Report Abuse
MGEEZ
The gentlemen on the picture looks very much like the former old Bophuthatswana leader (Lucas Magophe), i thought it was his son.Report Abuse
TLekota
Sowetan she was quoted saying Most Sadtu teachers are druggies, drunkard and in debts at the UCT School of Business. That woman has gone mad, I wonder who she is trying to impress because she had double scandals as a nyatsi, she must go away with her bastard son. The doctorate made her maal.Report Abuse
Pointman
@MGEEZ - I thought he looked like Mangope too and looked at the caption to make sure.Report Abuse
MophemeKoPitori
The competition between the govt workers is amazingly HIGH hence the debts.Report Abuse
candilious
MGEEZFinancial literacy and exercising self restraint is required here
+++++++++++++++++++++++++++++++++++++++++++++++Totaly
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zuluchick
ok maRamphele i respect and I loved your bookbut really now? we vant blame government for people wholive beyond their means, its hard enough affording rent, water, electricity and food! but peopel force matters and open accounts at Edgars Foschini what what and then fail to keep up with payments forgeting interest
they buy their children expensive s.hit forever buying perfume from Avon etc etc they are asking this debt...how can they solve?? Just live simple lives mense it cant be that hard!!
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