Moses Kotane municipality agrees to salary increase despite pension row

Though Moses Kotane municipality councillors have given the nod to salary increases for themselves, some continue to call for the municipality to account for not paying over the councillors’ pension money to the relevant authority.

In terms of the pay increases, mayor Nketu Nkotsoe would receive an annual pay of R984 320 – up from R955 651.

While the speaker and chief whip would earn R787 456 from R764 518. The members of the mayoral committee are set to get up to R738 583 (from R716 738), while councillors will get R311 501 annually from R302 428.

Salary increases for councillors were published by Co-operative Governance and Traditional Affairs Minister Velenkosini Hlabisa on 17 October.

The increments must receive concurrence from the North West MEC for cooperative governance and traditional affairs before being implemented.

Municipality listed as law-breaker

The municipality, which is 18 months in arrears with pension funds, is among Ekurhuleni, eThekwini, Buffalo City and Mangaung listed as defaulters and law-breakers by Financial Sector Conduct Authority.

By not paying over the money, the municipalities are in contravention of the Pension Funds Act of 1956. But this week the municipally denied it was not paying over its councillors’ pension money.

Municipality spokesperson Berlina Lekgethwane said their records showed all the 69 councillors had contributed fully since their inauguration in 2021.

But the exception was former speaker Gugulethu Mtshali who, on 14 December, 2022, cancelled her Municipal Councillors Pension Fund membership and councillor Nthabiseng Mollo, who also cancelled her membership and later asked to be reinstated.

“As required by applicable laws and governance norms, the municipality adheres to its financial and legal commitments,” she said.

ALSO READ: Moses Kotane Municipality denies pension fund defaults amid 18-month arrears

Municipal manager blamed for pension fund debacle

Despite the municipality’s denials, some councillors were adamant that their pension monies had been deducted from their salaries but were not paid over to the relevant pension fund.

A councillor, who asked to remain anonymous for fear of victimisation, blamed municipal manager Mokopane Letsoalo and chief financial officer Mzwandile Mkhize for the situation.

He also said service delivery at Mogwase and Madikwe townships and surrounding villages had come to a standstill.

He feared that if the pension arrears were taken from the municipality’s equitable share from National Treasury, then services would be crippled further.

ALSO READ: North West councillors fight over unpaid pensions