uMlalazi Municipality dismisses bankrupcy allegations
The uMlalazi Municipality - on the north coast - says allegations that it's bankrupt are not true.
The IFP has called for a forensic investigation into how funds there are being managed after reports that uMlalazi's employees are panicking over salary payments.
The municipality's Mkhuseli Buthelezi says these claims are not true.
"The municipality is financially stable and it will pay its employees for the current financial year. We don't have anything that talks to the resignation of the CFO of the uMlalazi Municipality - he is still working with us and he is still contracted. We will be able to do our projects per IDP and we will be able to pay our employees," he says.
But the IFP's Phumzile Buthelezi says municipal staff have told them a different story.
"The workers are worried about their salaries and it is not clear how their salaries will be paid. It must be investigated how the municipality funds were depleted. The CFO and the MM are accountable in the investigation. We fail to understand how the municipality spent this budget in just two months," she says.