The Finance Committee expressed concern over unpaid pension contributions amounting to 1.79 billion rands owed by approximately 19 municipalities.
In a statement released to the media, the committee reported that municipalities from the Free State and North West provinces account for 79.4% of the total debt. The committee intends to engage with the relevant ministers, affected municipalities, and trade unions to ascertain the measures being taken to settle the debt and ensure accountability.
Unpaid pension contributions raise broader concerns
The committee chairperson, Dr. Joe Maswangani, stated that the committee will also collaborate with the Parliamentary Legal Services to send letters to the affected municipalities demanding an explanation of the steps being taken to resolve the debt and ensure responsibility.
He emphasized that the responses will allow them to determine what corrective measures are being implemented to repay the outstanding contributions, as well as what actions are being taken against those responsible for the consequences. Maswangani also plans to approach the ministers of finance and cooperative governance and traditional affairs to learn about the measures being taken to resolve this debt.
It was proposed that the committee meet with all affected municipalities to hear directly from them about the outstanding debt and the measures being taken to settle it. Furthermore, the committee plans to begin engaging with municipal sector trade unions early next year to discuss possible interventions.
Maswangani insisted that individuals found responsible for failing to meet their obligations must be held accountable according to the law. He added: 'The people elected us and trust us completely. We cannot let them down.'
IOL previously reported that trade unions had sounded the alarm over a growing number of employers allegedly not paying pension contributions into pension funds after deducting these amounts from employees' salaries. The Public Service Association (PSA) stated that employers have failed to remit over 8 billion rands in pension contributions, putting workers at risk of discovering gaps in their retirement savings only after termination, retirement, or applying for benefits.