There is a syndicate in some Free State municipalities that generate third party deductions from employee salaries, and which are supposed to be paid over to pension and medical funds, SARS, and other third parties, according to Wouter Wessels, FF Plus MP in the Free State legislature.
Mr. Wessels said that in some municipalities, such as the Mendesopa local municipality, including Ladybrand, Tweespruit, Excelsior, and Hobhouse, there are employees who are members of the syndicate and recover third party deductions from other employees’ salaries and then pay them to their friends and family.
According to Mr. Wessels, it is not limited to Mantsopa alone, and provincial treasury is already aware of such criminal activities and investigations are already being established.
Wessels has blamed the ruling party for their inability to exercise control over their municipalities.
“It is a shame that they have allowed the situation to go so far, and it makes one wonder how many cadres are involved in the devious mission.”
“Notwithstanding the possible involvement of a syndicate in some municipalities, other municipalities also commit themselves to criminality by using third party deductions for operating expenses and not paying over to such third parties.”
Mafube Local Municipality, including Frankfort, Villiers, Gemini, and Cornelia, have outstanding debts to SARS and pension funds, totaling R16,3 million and R43,8 million, respectively. The Masilonyana Local Municipality (Brandfort, Verkeerdevlei, Theunissen, and Winburg) respectively owe R3,8 million and R7,3 million to SARS, pension, and medical funds. Ngwathe Regional Municipality (Paris, Vredefort, Edenville, Koppies, and Heilbron) owe approximately R6,5 million to salary contributions. These municipalities are just a few examples of this malpractice.
“The FF Plus will file a complaint with the Public Protector regarding the overpayment of third party deductions at all municipalities in the Free State. When municipal councils do not pay over the third party contributions deducted from employees’ salaries to the right third parties, they, in effect, steal from their own staff and place the municipality in a severe financial crisis,” said Mr. Wessels.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
