Ditsobotla takes out ABSA loan to pay staff, owes Eskom millions more
1 March 2017
Only a few days after Premier Supra Mahumapelo slammed ABSA Bank and threatened to withdraw all provincial government accounts from them, Ditsobotla Municipality had to turn to the same bank and borrow money to pay employee salaries.
This R20 million loan was taken out without a council resolution as prescribed in the Municipal Finance Management Act, making the loan in contravention of the MFMA.
Employees were paid late for the month of February.
On top of this, Ditsobotla will also not be able to honour their agreement with Eskom to pay the arrears on their electricity bill. The ANC said that they will pay this account from their Equity Share that municipalities will only receive by the end of March.