The Naledi Local Municipality in Vryburg in the North West has been stripped of its powers by the provincial government after its services and finances collapsed.
The municipality is battling to pay R283 million to Eskom and owes other creditors over R500 million.
It’s also engulfed by wide-spread corruption with the Hawks having confirmed that its previous municipal manager, Eric Phokoane, has been found guilty of looting over R216 million meant to build 300 RDP houses.
Naledi municipal mayor Neo Schalk, says those implicated on corrupt activities will be dealt with.
He says: “I am going to make sure that we follow up on all these things. I am giving you only three months and will do the necessary follow-ups. People are getting away with murder.”
The municipality is also reported to have not been paying municipal pension funds.
Independent Municipal and Allied Trade Union’s (IMATU) Ceasar Tlhabi of says: “The pension funds of employees has not been paid to the funds. The pension funds act clearly stipulates that the money that is deducted from the employees’ salary must be transferred to the fund and this has not been happening and this constitutes a criminal offence. Employees cannot access their pension funds”