The management of Greater Letaba municipality in Duivelskloof, Limpopo, is being investigated for corruption after one of its employees laid a complaint with local government authorities.
The local government and housing department in Limpopo said they were alerted to the allegations three weeks ago.
A source close to the municipality says the employee concerned was awarded an added responsibility allowance in November 2004, effective till the end of December 2005, but was not paid.
This after a position was vacated when another employee resigned.
It is alleged the municipality's finance director recommended to the municipal manager that the employee be given an added responsibility allowance, but the municipal manager refused to approve it without valid reasons.
In a memorandum written to the municipal manager in March 2006, the finance director said the municipality had paid employees added responsibility allowances before, so the said employee should be paid as well.
The source, who asked that his name not be mentioned for fear of retribution, said the municipality had dismissed three employees already this year without valid reasons.
"If you try to exercise your rights here they regard you as a threat and you have to face the boot," says the source.
Limpopo's local government and housing department spokesman Clayson Monyela says the investigations could be completed by the end of this month.
Monyela says they are gathering all the facts and evidence before making any recommendations to the department regarding these allegations.
It is also alleged that the financial manager and the assistant were suspended in June 2005 after an undisclosed amount of money was stolen from the municipality's safe.
Their suspension was allegedly kept a secret by the management of the municipality.
The municipality's personnel department, on instruction from the corporate services director, wrote a memorandum in January 2006 to the municipal manager to investigate the matter, but to no avail.
The management of the municipality was not available for comment at the time of going to press.