The Musina Municipality said on Tuesday that there was no truth in the rumour that the municipality was on the verge of bankruptcy and struggling to fulfil its obligations towards its creditors.

Municipal spokesperson Mr Wilson Dzebu did, however, point out that the municipality was experiencing a cash flow problem and that some creditors were getting paid late. Asked whether the municipality would therefore consider the situation a crisis, Dzebu responded by saying: “The cash flow problem is serious, but not necessarily a crisis.”

As for the reason why the municipality’s finances are in such a poor state, Dzebu attributed it to the Zimbabwe crisis.

“The influx of Zimbabwe citizens and the failure of government to step in and assist with funds has left a small municipality like Musina to absorb all the expenses linked to the Zimbabwe crisis ... Musina Local Municipality is in communication with national government to refund the municipality the money spent on this situation,” Dzebu said.

Rumours also surfaced that the municipality was experiencing problems with regard to the paying of salaries the last couple of months.

“Salaries were not paid late in any month. The perception was that salaries were paid late in March, because the Musina Local Municipality is banking with ABSA and some of the employees are with other banks. When we transfer salaries through Cashfocus, the money only shows the next day. The municipality transferred the salaries on the 25th (payday) and the employees with other banks received the money on the morning of the 26th. Since then, we have been transferring on the 24th to accommodate other banks,” Dzebu said.