Bouncing debit orders, unpaid car payments and being forced to postpone the family's Christmas shopping. This is the nightmare facing one of the about 2,000 employees of Emfuleni local municipality whose December salaries has been delayed because Eskom attached the municipality's bank account over unpaid bills.
The employee, who asked not to be named, told the Sunday Times his family faces a bleak Christmas because they have been forced to put their plans on hold.
“Our pension funds, medical aid premiums, and legal aid cover haven’t been paid and this is a critical month. My household is used to having a decent meal on Christmas Day,” he said.
Eskom took legal action against the southern Gauteng municipality, seated in Vanderbijlpark, because it failed to pay its R5.3bn bulk electricity debt.
Employees and councillors who were expecting their December salaries on Tuesday have no idea when payment will be made because meetings between municipal managers and Eskom officials are still under way.
In an internal memo dated December 19, acting municipal manager Refilwe Mogotsi told employees that the municipality was “facing a challenge with regard to the processing of salaries for December” and that senior management was trying to resolve it.
“The municipality is in constant liaison with the office of the [Gauteng] premier and Eskom. It is envisaged that salaries will be paid on or about December 23.”
But this is cold comfort for an employee who was forced to borrow money from loansharks to travel to his home village in Limpopo.
“I had packed, ready to go home with my wife and child, only waiting for my salary — which never came,” he said. “I found myself desperate, and my family back home was waiting for me and they don't understand when I say I haven’t been paid, it’s like I'm lying to them.”
The man has no money and has yet to do his Christmas shopping.
“I hate debts but I’m praying that we get paid on Friday,” he said.
Another Emfuleni employee from a Limpopo village said he was angry that his family’s December had been spoiled by something that had nothing to do with him. The father of four said he’s yet to buy Christmas clothes and food for his children.
“I've been forced to put everything on hold,” he said. “Even if they pay us on Friday, there’s little I will still be able to do before Christmas on Sunday.”
Three weeks ago, Eskom attached the Emfuleni local municipality’s assets after obtaining a R1.3bn judgment against it. The high court in Pretoria granted the order after the municipality failed to settle its account.
The embattled municipality, whose main towns include Vereeniging, has been struggling to pay both Eskom and Rand Water.
South African Municipal Workers Union Gauteng secretary Mpho Tladinyane said: “Through the discussions with Eskom, it seems Eskom is willing to enter into a payment plan with Emfuleni and therefore may lift the attaching of the bank account.”
Tladinyane said workers were severely affected.
“If your salary is not paid, it affects payments towards your house, medical aid and things like stationery, and there's penalties for missed payments and it's unfortunate that workers have to face this,” said Tladinyane.
I've been forced to put everything on hold. Even if they pay us on Friday, there’s little I will still be able to do before Christmas on Sunday
— Municipal employee
Hassan Mako, Emfuleni MMC of finance and revenue, the matter had been raised with public enterprises minister Pravin Gordhan.
“There are ongoing engagements... We are working tirelessly, together with the political leadership including the premier, the co-operative governance MEC, myself and the mayor with regards to this particular issue,” Mako said.
Mako said Eskom's move was unfair as the debt was incurred in 2016 but the utility had chosen to take action now.
“This current [municipal] leadership has been paying Eskom. It's just rather unfortunate that at times we can pay based on the affordability and what we would have collected as a municipality,” Mako said, adding that Eskom's action could also affect municipal service providers who employ thousands of people.
He said Emfuleni was “hopeful” it will be able to pay salaries before Christmas.
DA MP Dennis Ryder, who is chair of the party’s Vaal region, said it was unfortunate that the mismanagement of the municipality would have such an impact on so many families at a time when access to banks is limited.
“The nonpayment of salaries is however also likely to impact on service delivery as disgruntled staff lose motivation to fulfil their duties,” Ryder said.
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