ANC staff to picket over salary cuts: What you need to know so far
The ANC has again come under the spotlight for its failure to pay salaries on time.
The party will hear the grievances of employees when they picket against it next week, according to a statement issued by the party on Wednesday.
ANC deputy secretary-general Jessie Duarte denied that the party was cash-strapped. She told journalists in May they have “cash flow” problems because some of their sponsors have allegedly stepped back.
ANC treasurer-general Paul Mashatile told the national executive committee meeting last month that the party was considering retrenching 50% of staff.
Here's what you should know:
What the ANC says about the protest
The protest will be at the main ANC branch in Luthuli House and other provincial party branches on June 15. The party said the protest will continue despite efforts by the ANC to attend to its cash flow challenges.
The Sunday Times previously reported that the SA Revenue Service (Sars) garnished R17m of the ANC's Independent Electoral Commission (IEC) allocation funds to cover its tax bill.
The IEC allocates R168m a year to all political parties in parliament, which is distributed quarterly.
Luthuli House general manager Febe Potgieter had sent a communique to staff, informing them about late salary payments due to “continued financial difficulties”.
Neither the IEC nor Sars would comment on the matter.
Paying salaries over Sars
An insider, who spoke on condition of anonymity, told the paper the ANC resorted to paying salaries with the little IEC funding it got back from Sars and its funders and instead owes Sars.
“What has happened is that when you pay salaries you must deduct pay as you earn (PAYE) that must go to the taxman, but because at times you can't always raise money, the first thing you want to do is to pay salaries, and then you [would rather] owe Sars. So the ANC owes Sars for PAYE,” the insider said.
Pension contribution controversy
Families of two former ANC employees told the Sunday Times last month they had not received death benefits payouts and accused the party of giving them the runaround.
An insider told the paper the party deducted provident and pension fund contributions from employees' salaries, but they recently learnt that the deductions did not make it to the administrator.
The sister of Mduduzi Mvubu, a media specialist who worked in the KwaZulu-Natal before his death in August last year, said she last called the ANC in March to follow up.
She said she was told that claims take time.
Luthuli House staff member Babylon Xeketwana died in July.