ENOCH Mgijima Local Municipality (EMLM) council agreed on Tuesday to pay hundrends of thousands of rands owed by former Inkwanca Local Municipality to the Municipal Workers’ Retirement Fund for its employees.
The fund, formerly know as the Samwu Provident Fund, wrote to EMLM claiming the former Inkwanca failed to pay over the pension fund for March and April 2014 contributions and that this was in contravention of Section 13A of the pension fund act. “On investigation from former Inkwanca employees we are not getting certainty whether this money was paid over due to the instability at that municipality in 2014,” the agenda item said.
According to section 197 of the Labour Relations Act, the amalgamating entity has a responsibility of taking over the employees, assets and liabilities of the former entities. “The liability owed by former Inkwanca Municipality is now our liability as EMLM. The outstanding contribution to date is R399 791.67 including accumulated interest,” the item said. The amount was to be paid before February 28 but interest would increase if it was paid after that. It could not be established whether the money had been paid or not. The municipal public accounts committee was tasked to investigate why the money was not paid and who was responsible for paying the money.
