Masilonyana Local Municipality workers are facing renewed uncertainty regarding their monthly salary payments as management warns of potential delays caused by the attachment of the municipality’s primary bank account. Acting Municipal Manager Mr. M.E. Makgahlela issued a memorandum to staff on 24 April 2026, confirming that the current financial instability has jeopardised the payment of wages.
Financial Mismanagement And Operational Impact
The Free State municipality, which requires approximately R15 million per month to cover its wage bill, has consistently struggled to meet its financial obligations. Parliamentary records indicate that the municipality has frequently diverted funds from its equitable share—intended specifically for community service delivery—to cover operational staff costs.
During a briefing of the joint committee on Cooperative Governance and Traditional Affairs, Committee Chairperson Mr. Mxolisi Kaunda condemned the trend of prioritising salaries over service provision. He stated that it is highly unacceptable for taxpayers’ money meant for community development to be redirected to salaries, especially when the quality of service delivery remains a significant concern.
Historical Context Of The Debt Crisis
The current situation follows years of severe fiscal mismanagement, which previously saw the municipality offer staff R1 000 food vouchers in late 2022 as an alternative to salary payments. Repeated instances of creditors, such as the Municipal Workers’ Retirement Fund, attaching the municipal bank accounts have further crippled its ability to function effectively.
The provincial executive has since intervened by invoking Section 139(1)(b) of the Constitution due to the sustained failure of governance within the municipality. The Special Investigating Unit is also currently conducting inquiries following authorisation by President Cyril Ramaphosa in September 2024 to probe allegations of serious maladministration.
Labour representatives are expected to meet with municipal management this week to discuss a timeline for the outstanding salary payments.