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Municipal Workers On Their Own If Pension Fund Contributions Not Paid – Finance Minister

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MUNICIPAL workers whose pension fund contributions have not been paid to schemes will be left with no recourse.

National Treasury did not have the power to take direct measures against a municipality that had not paid, according to Finance Minister Enoch Godongwana.

In response to a parliamentary question from DA MP Samantha Jane Graham, Godongwana said Treasury could only act in Section 139 of the Constitution if the province had failed to exercise its oversight over a municipality. 

In her question, Graham cited the non-payment of pension contributions by the Dr Beyers Naudé Local Municipality in the Eastern Cape to third parties.

According to Godongwana, by 15 December 2020, the municipality did not follow through on its commitment to settle all the outstanding amounts.

It has since made a number of payments from January 2021, including current and outstanding debt.

By 8 September, the total outstanding pension debt stood at R16.4 million, which is

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