A motion has been tabled in council for the Matjhabeng Local Municiality to urgently release a comprehensive report on the unpaid Compensation of Injuries and Diseases Act (Coida) debt owed.
Abigail Schoeman, DA councillor, says the municipality’s mounting debt is more than just a financial issue; it is an indication that it continues to break the law. The municipality has not adhered to Coida since 2000.
“Any payments made, penalties imposed, discussions with the Department of Labour, and correspondence related to these issues must be included in the report. We aim to uphold the rule of law and protect municipal employees who face risk due to persistent noncompliance.”
Schoeman says this growing debt directly affects residents, as funds that should be used for service delivery are instead lost to penalties and interest. Without accountability, residents are left paying more for less.
“I stated in October 2023 that Matjhabeng owed R59 million to Coida. That sum has already increased to
R65 million. According to South African labour laws, businesses are required to compensate employees for any illnesses or injuries they sustain while on the job and manage claims through a national fund. In addition to increasing the municipality’s financial and legal risk, breaking these regulations also reduces the effectiveness of these safeguards.
“When I enquired about the debt in April 2024, the then-municipal manager responded that the municipality would collaborate with the provincial Department of Employment and Labour to settle the debt and possibly eliminate the interest.”
Schoeman says in a follow-up letter to the Council in April 2025, she requested additional details regarding the amounts written off, the remaining balance, and a complete financial statement covering the period from December 2004 to April 2025.
The following are some of the response’s key points:
■ The Matjhabeng Municipality has incurred penalties for late payments since May 2012.
■ Section 83(6) of the Compensation for Injuries and Diseases Act was invoked against Matjhabeng. This section stipulates that penalties will be assessed against employers who fail to submit their Return of Earnings (ROE) within the designated timeframe, which could be as high as 10% of the final assessment. According to the statement, Matjhabeng has faced penalties since 2017.
■ Since 21 May 2017, there have been no credits to the account, except for a reversal of a charge that was allegedly billed in error in 2022.
“We will continue to draw attention to this disrespect and will take all necessary steps to ensure that workers are safe, the law is obeyed, and the government is transparent. Residents of Matjhabeng are entitled to a law-abiding municipality that safeguards its employees,” Schoeman says.
