MAKHADO (LOUIS TRICHARDT) – Following Council’s last minute dash last month to secure a loan to enable them to pay their monthly salary bill, it was made clear last week that Council is not out of the woods yet regarding their dire financial situation.

During Council’s monthly meeting last Thursday, Mayor Rhulani Nkuzana announced that Council is slowly but surely recovering from it serious cash-flow problem. He said that, although Council is not out of the woods yet, they are, however, out of the intensive care unit.

Cllr Nkuzana also announced that a delegation from the National Treasury Department and the Department for Local Government and Housing will visit the municipality this week to asses Council’s financial situation. He pointed out, however, that their visit is not a witch-hunt, but rather to assist and help Council with its financial problems. A visit by representatives from SALGA on November 3 to investigate the situation was also mentioned.

Salary payments this month seem to have been made without problems. However, an internal memo circulated to all municipal directors on October 27 sparked fears from officials that they will not be paid their annual bonuses in December.

“The current practice is that all employees receive their Vacation Leave Bonuses with their December salaries. As a result of the regulation of Municipalities’ cash flow in terms of the new Local Government: Municipal Finance Management Act, 2003, it will not be possible to maintain the practice to pay out vacation leave bonuses during December of each year,” the memo reads. It continues to state that, consequently, Council considers paying out vacation leave bonuses in the month of the employee’s birthday or in the month before the employee’s annual leave.

“Kindly discuss the above-mentioned proposed amendment with your subordinates and submit their comments to the Human Resources Department before or on 5 November, 2004. If no comments are received, it will be assumed that your subordinates agreed to any proposed amendment,” the memo concludes.

Following news of this, officials openly voiced their disapproval of Council’s intention. This, especially after Council’s seven directors had already received their annual performance bonuses of just over R600 000 in total in July this year. Many also felt that failure to pay them their annual bonuses would be unlawful, as a thirteenth cheque forms part of the employment contracts.

As anger over Council’s intentions spread, a second memo was circulated by the acting municipal manager, Ms Faith Muthambi, on Friday, addressed to all employees.

“It has come to my attention that the contents of two circulars, both dated 27 October 2004, that had been sent out to employees by the Department of Human Resources, was perceived incorrectly in that assumption was made by readers that vacation bonuses would not be paid in December,” the memo stated. It further goes on to say that “The Department of Human Resources as administrative advisor to decision makers is investigating the subject presently. An important element in the investigation is consultation with the labour unions and employees via their director. (This was the intention with the one Circular dated 27 October 2004, although it may not have been put across clearly.) The report about the subject is yet to be compiled and will be submitted to the Executive Committee with full comments of all parties, as is administrative practice.”

The memo is concluded with “The rumour that bonuses would not be paid as usual in December 2004 is incorrect.”

In the meantime, Council’s woes regarding their financial chaos still continues. Residents received their municipal bills late and many reflect administrative errors. As one resident remarked: “How can Council expect me to pay my account if the amounts are incorrect. This will not help them solve their financial problems.”