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Municipality’s stance on the ongoing feud over non-payment of salaries by SCTIE

​Ugu District Municipality has been inundated with enquiries from various publications pertaining to non-payment of salaries by the South Coast Tourism and Investment Enterprise. As a parent municipality to the South Coast Tourism & Investment Enterprise (SCTIE) entity, the municipality is concerned that the entity’s precarious financial affairs have yielded to a situation whereby the entity is unable fulfil its contractual obligation with its employees. This is regrettable.It must however be stated that the SCTIE has been solely established as a Special Purpose Vehicle tailored to drive investment initiatives throughout the district following the amalgamation of the erstwhile Ugu South Coast Tourism and Ugu South Coast Development Agency. The SCTIE has its own Board of directors and management who have the autonomy to conduct all operations of the entity. The municipality, along with four local municipalities have entered into Service Level Agreements with the entity, with budgetary provision in the form of a grant issued annually to the entity to conduct its mandated projects.It is a well-known fact that Ugu District Municipality has for the past financial years been confronted by financial constraints, however, the municipality has been able to make available payments to the entity. Municipal leadership is currently in discussions towards directing the entity to establish a funding model which will insulate the SCTIE from being heavily reliant on municipal grants for survival to being financially self-sustainable.​                                                                                          ENDSISSUED BY:UGU DISTRICT MUNICIPALITYFor more information and media queries contact:Municipal SpokespersonMr France ZamaTel: 039 688 5713Email:France.Zama@ugu.websitesupport.co.za​