- Several municipalities and SOEs are dire financial straits
- As a result, some of them have struggled to pay employees on time
- This has led to threats of strike action from several trade unions
Several state-owned institutions and local municipalities are under immense financial strain, which has resulted in some employees receiving their salaries late or not being paid at all.
Among these is state-owned arms manufacturer, Denel, which only paid its employees 85% of their salaries last week.
These employees only received their full pay after government intervened and borrowed the funds from an unidentified lender.
Additionally, Metrorail employees also disrupted the running of trains, complaining that they had also not been paid, according to News24.
The situation at various municipalities appears to be similarly dire. 65% of local municipalities were found to have errors in their financial record-keeping, according to the Auditor-General, while fewer than 20 received clean audits.
Municipal debt has also been increasing, with the National Treasury reporting that municipalities owed a combined R163 billion as of March this year. This debt has also made it difficult for some municipalities to pay their employees.
This had to some trade unions threatening strike action, Briefly.co.za has gathered.
Samwu, the South African Municipal Workers' Union, says they are concerned about municipalities' "constant failure to pay workers' salaries on payday".
As a result, the union threatened to go on strike in 30 municipalities if employees did not get paid on time.
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