3 days ago
Treasury warns Emfuleni to pay pension contributions
Emfuleni Local Municipality (ELM) has been identified as one of 39 municipalities in the country that failed to transfer employee pension contributions to the relevant funds.
This week, the National Treasury issued a formal warning to Emfuleni, ordering the municipality to pay the outstanding pension fund contributions within seven days or face further consequences.
'In Emfuleni's case, more than R6.5m in pension fund deductions was withheld instead of being paid to the fund,' explained Freedom Front Plus councillor Gerda Senekal.
The Treasury also warned Emfuleni to settle its historic debt of R1.7b owed to Rand Water.
'Should Emfuleni fail to comply, the national government may withhold its equitable share for the remainder of the 2025/26 financial year,' the Treasury cautioned.
Senekal said the party is not surprised by the tough stance taken by the Treasury.
'Even four years of administration under the Gauteng provincial government brought no improvement,' she said.
Eskom and Rand Water have previously seized funds from the municipality's accounts, forcing residents to pay their outstanding water and electricity bills directly to the bulk suppliers.
'It's disgraceful that not only is the municipality failing to provide basic services, but it's now also using staff pension contributions for other purposes,' Senekal added.
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