By Sihle Mavuso
The cash-strapped Nongoma municipality in northern KwaZulu-Natal has approached banks for an overdraft in order to pay staff salaries.
Last week the municipality run by the ANC, EFF and the National Freedom Party (NFP) coalition failed to pay salaries for senior managers and councillors after it ran into financial difficulties.
It later emerged that in April this year, the municipality approached the KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs with a begging bowl. However, it did not get the grant it asked for, thus complicating its financial crisis.
In the same letter to the department, the municipality admitted that it was facing financial challenges and it will end the year with a deficit of R58-million.
In new developments, the municipality told staff that it had approached banks for an overdraft.
This is contained in an internal memo obtained by Scrolla.Africa today. The memo was sent out by the acting municipal manager, Sipho Nkosi.
“Dear Colleagues. Kindly be advised that the bank is promising to finalise the overdraft tomorrow due to their internal processes, but it is approved in principle. The inconvenience is regretted,” read part of the memo.
Nkosi did not respond to questions from Scrolla.Africa regarding the memo.
Pictured above: The Nongoma municipality has approached banks for financial assistance.
Source: Sihle Mavuso
