{"id":19583,"date":"2026-02-07T06:11:35","date_gmt":"2026-02-07T06:11:35","guid":{"rendered":"https:\/\/microvibenews.com\/?p=19583"},"modified":"2026-02-07T06:11:35","modified_gmt":"2026-02-07T06:11:35","slug":"gangster-municipality-fails-to-pay-pension-fund-contributions","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=19583","title":{"rendered":"\u2018Gangster\u2019 municipality fails to pay pension fund contributions"},"content":{"rendered":"<p><\/p>\n<div id=\"textFreeArticle\">\n<p>The Ditsobotla Local Municipality in the North West has not paid its employees\u2019 pension contributions for 14 months, according to the South African Municipal Workers Union (Samwu).<\/p>\n<p>Municipal spokesperson Pius Batsile acknowledged that pension funds have not been paid for several months and attributed it to low revenue collection.<\/p>\n<p>\u201cThe municipality is facing cash flow challenges as of now. I am currently not in a position to discuss a way forward relating to the challenges of payments that are supposed to be made to pension funds,\u201d Batsile told GroundUp. <img loading=\"lazy\" decoding=\"async\" id=\"gu_counter\" class=\"leave\" src=\"https:\/\/republish.groundup.org.za\/counter\/hit\/16314\/gangster-municipality-fails-to-pay-pension-fund-contributions\/\" alt=\"\" width=\"1\" height=\"1\"\/><\/p>\n<p>In August last year, employees went three months without salaries after the municipality\u2019s equitable share grant \u2013 the portion of national revenue it receives from Treasury every year \u2013 was withheld.<\/p>\n<p>The municipality has struggled to collect sufficient revenue to fund its operations. At the end of the 2024\/25 financial year, the municipality\u2019s liabilities exceeded its assets by R295 million.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>A municipal worker who asked not to be named said it is \u201cpainful\u201d that contributions are still deducted from his salary but not paid to the pension fund.<\/p>\n<p>He also went several months without medical aid last year, because contributions were not paid by the municipality.<\/p>\n<p>The beleaguered municipality (main town Lichtenburg) was placed under national administration in September, following years of mismanagement and corruption. President Cyril Ramaphosa said in 2022 that the municipality had been \u201ctaken over by gangsterism\u201d. It has been placed under provincial administration eight times.<\/p>\n<p>Service delivery has halted. The Democratic Alliance\u2019s cooperative governance spokesperson for the North West, CJ Steyl, told GroundUp that there is only one refuse truck, which frequently goes in for repairs. As a result, rubbish is being illegally dumped at school yards and open spaces in residential areas.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>No road maintenance is taking place because the municipality\u2019s \u201cyellow fleet\u201d of earth-moving equipment has not been properly maintained, said Steyl.<\/p>\n<p>Steyl said it will be at least eight months before the national intervention brings stability and improved service delivery to the municipality. He believes that if suitably qualified and experienced directors and managers are appointed, and the finances are stabilised, service delivery will improve.<\/p>\n<p>Vincent Diphoko, provincial spokesperson of the South African Municipal Workers Union (Samwu), said it is disappointing that \u201cthe municipality is continuing with its culture of non-payment of statutory deductions.\u201d<\/p>\n<p>Samwu supported placing the municipality under national administration \u201cwith a hope that it would rescue the situation,\u201d said Diphoko.<\/p>\n<p><em>Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n<p><script data-cfasync=\"false\">\n            !function(f,b,e,v,n,t,s)\n            {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n                n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n                if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n                n.queue=[];t=b.createElement(e);t.async=!0;\n                t.src=v;s=b.getElementsByTagName(e)[0];\n                s.parentNode.insertBefore(t,s)}(window, document,'script',\n                'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n            fbq('init', '779812924991616');\n            fbq('track', 'PageView');\n        <\/script>#Gangster #municipality #fails #pay #pension #fund #contributions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ditsobotla Local Municipal&hellip; <\/p>\n","protected":false},"author":1,"featured_media":19584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[9984,2251,137,12113,4682,507,88],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/19583"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19583"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/19583\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/19584"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}