EFF statement on the debt owned by local govt municipalities to municipal pension funds
3 September 2024
The Economic Freedom Fighters (EFF) has noted the worrying Financial Sector Conduct Authority (FSCA) report, that has highlighted that 172 municipalities owe an amount of more than R1 Billion in pension fund contributions.
The report paints a worrying picture, wherein South African local government municipalities have been deducting money from their employees, and not paying it towards the pensions of workers. This blatantly reckless behaviour, is a ticking time bomb that places municipal workers at financial risk.
The biggest offending municipalities of this violation of Section 13A of the Pension Funds Act are George Local Municipality and Mossel Bay Local Municipality in the Western Cape, which have not paid their pension contributions in over 200-months.
Both of these municipalities are governed by the coalition partner in the national government, the Democratic Alliance (DA).