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The Amathole District Municipality has moved to reassure communities that despite the financial difficulties facing it, ADM would continue providing quality services.
That was the assurance from the mayor, Khanyile Maneli, during a briefing on Wednesday following a circular earlier this month informing employees and councillors ADM would not be able to pay salaries for four months, February, April, May and June.
Salaries are expected to be paid in March when ADM receives its equitable share from the National Treasury.
The SA Municipal Workers Union has called for the District Municipality to be placed under administration.
Briefing the media on Wednesday, ADM mayor, Khanyile Maneli said this matter has been brought to the attention of both national and provincial governments.
He said their financial woes emanated from the 2013/2014 financial year, which saw, among other things, the re-categorisation of ADM from a Category 6 to a Category 7 as per salary scales set out in the bargaining council.
Other issues included the standardisation of salaries, the introduction of the Essential Car User Scheme, non-payment of Amatola Water Board debt for services rendered and the non-payment of R50 million due to the Department of Water and Sanitation.
The mayor said what added to the situation was the employment of 900 people between 2013/2014 financial year and 2017/2018, resulting in an inflated organogram which included functions not strategic to ADM operations. The drought also led to low revenue collection.
“It is these key decisions which were inherited in the commencement of the 5th Term of administration that had and continue to have a direct and indirect impact on the Cost of Employment,” Maneli said.
However, he said ADM had adopted and implemented a Municipal Turnaround Strategy with eight development pillars, focussing, among others, on the Institutional Development and Design, Quality Service Delivery and sound financial management of the organisation.
“As the political head of the executive, I have full confidence in the leadership of the municipal manager and his entire executive in the implementation and monitoring of vision 2058 and the municipal turnaround strategy adopted by the council.”
