Johannesburg - City of Joburg has reassured all employees that their salaries would not be affected by the city’s cash flow problems that have become a concern to most residents of Joburg.
Last week, opposition parties did not support the acquisition of a R2 billion loan from the Development Bank of Southern Africa. The loan was meant to ensure that the municipality is able to meet its financial obligations. But the matter has become a political football between the DA-led coalition and the opposition bloc.
Group Corporate and Shared Services MMC Leah Knott said despite reports that the municipality would not be able to pay its employees, the municipality would meet its financial obligations.
“The ANC states that the salaries of 30 000 employees are at risk and yet, believing that, they still voted against a Development Bank of Southern Africa (DBSA) loan application today. We want to assure all employees of the City of Joburg that their salaries, UIF, PAYE, pension and medical aid contributions are not, and never have been, at risk,” Knott said.
Knott said when the multi-party government took over the running of the City, it was faced with an expiring fleet contract and had to start from scratch. The contract is likely to affect waste collection in the municipality.
“We immediately started procurement in early 2022, which required the establishment of a specifications committee by the city manager to assess the city’s non-specialised fleet needs (over 4000 vehicles), as well as the establishment of an evaluation committee and the tabling of a report in council to commence public participation as we opted for a 5-year contract,” Knott said.
It was not clear what the future of the city was with lack of co-operation from various sides of the municipal chamber. But residents and city staff were concerned about the state of affairs in the running of the city.
The Star