Chillax, we are all paid up: George, Mossel Bay

GARDEN ROUTE NEWS - Allegations by the EFF that both George and Mossel Bay Municipalities have not paid their pension contributions in more than 200 months are absolute nonsense, says the two local authorities. "We are fully paid up."

The political party released a statement on X on 3 September, citing these two DA-run municipalities as the biggest offending municipalities in reference to pension fund contributions owed to the South African Local Authorities Pension Fund (SALAPF).

The EFF stated their concern over the Financial Sector Conduct Authority (FSCA) report, that highlighted 172 municipalities that owe more than R1 billion in pension fund contributions. However, both George and Mossel Bay Municipalities said there is no reason to worry, they are fully paid up.

Incorrect list

"George Municipality should be removed from the FSCA incorrect list," said spokesperson Chantèl Edwards. "The statement released by the EFF... is entirely false and misleading." Edwards said SALAPF one-sidedly claimed an exorbitant increase in the monthly contributions from the municipality without following the necessary processes.

"Thereafter they took George Municipality to the High Court, where they lost their case. They applied for leave to appeal, and then lost again, 18 years ago. Unfortunately, SALAPF refuses to abide by the judgment and continues their one-sided claim for the increased contribution from the municipality."

Edwards said George Municipality is a responsible and accountable local government that governs public funds within the guidelines of local government legislation. "George has been recognised as one of the top-performing municipalities in the country. We confirm that all contributions to the SALAPF and other pension funds are fully paid up."

In solidarity

Mossel Bay Municipality added their voice to the matter, saying the retirement fund contributions as initially contractually agreed upon, have been paid in full. Mossel Bay Municipality is currently in dispute with SALAPF.

Shortly after George Municipality was issued a summons from the High Court, Mossel Bay Municipality too received a summons, along with numerous other municipalities, for their failure to pay increased contributions.

"The court ruled in favour of George Municipality and found that SALAPF failed to prove the existence of a resolution by its board of directors, to increase the employer contributions. SALAPF then withdrew the action against Mossel Bay Municipality during the course of 2016," said senior communications officer Cornelle Carstens-Johnston.

"Since the withdrawal of the action, the municipality has been repeatedly receiving letters of demand from SALAPF in relation to alleged arrear contributions and a second employer rate increase.

"The municipality is disputing the alleged arrear contributions and the second employer rate increase, given that the previous increases have already been found to be invalid by a court of law.

"SALAPF has not been forthcoming with information that the correct procedure has now been followed for the increases and that there is a resolution that has been properly passed."

Mossel Bay Municipality is listed as one of the top achieving municipalities in relation to the annual Municipal Financial Sustainability Index (MFSI) report by Ratings Africa (April 2024).

Response from SALAPF and FSCA is being awaited.

Mossel Bay Municipality senior communications officer Cornelle Carstens-Johnston