The Okhahlamba Local Municipality in KwaZulu-Natal faces scrutiny after failing to pay over R11 million in employee pension fund contributions.
The KwaZulu-Natal Treasury has demanded answers from the municipality’s accounting officer, stressing that the Municipal Finance Management Act (MFMA) mandates compliance with tax, medical aid, and pension obligations.
KwaZulu-Natal Finance MEC Francois Rodgers warned municipalities that failing to transfer pension fund contributions is both illegal and a violation of workers’ rights.
This follows revelations that the Okhahlamba Municipality’s unpaid pension contributions had ballooned to over R11.4 million by December 2024.
In a media statement, Rodgers described the failure as “fiscal delinquency of monumental proportions” and urged municipalities to align with the government’s vision of a capable and ethical state that prioritizes workers’ rights.
“The MFMA explicitly outlines the fiduciary duties of accounting officers. Deliberately or negligently failing to fulfill these obligations constitutes financial misconduct,” Rodgers said.
He called on the Okhahlamba Municipality to implement consequence management against those responsible for the lapse and ensure accountability.
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