While municipalities are deadlocked in wage negotiations and rates
skyrocket to cover salary increases, senior municipal staff in the
Northern Cape are mining gold.

The Democratic Alliance believes that municipal staff must be paid
salaries based on experience, skills and qualifications. However,
remuneration must be entirely linked with responsibility and
accountability.

Four municipal managers in the Northern Cape earned more than R1
million in 2013/14. This is according to a written reply to questions
to the national Minister of Co-operative Governance.

The municipal manager in Sol Plaatje, Goolam Akharwaray, earned more
than any other municipal manager in the province, including those from
the district municipalities, and more than the municipal manager of
one of the six metropolitan municipalities. While the municipal
manager from Buffalo City had a basic salary of R977 914, the
municipal manager from Sol Plaatje pocketed R1.48 million. Mr.
Akharwaray also enjoyed perks worth at least R175 200.

As of 1 April 2015, Mr. Akharwaray’s total remuneration package is
R2.051 million. This is more than magistrates, members of parliament,
mayors, traditional kings, high court judges and deputy ministers
earn. In fact, it is higher than the salary of the premier, which is
reportedly R1.7 million. It is also significantly higher than any of
the members of the executive council, who earn around R1.2 million.

The DA urges the premier to intervene on these high-scaled salaries
that are paid to officials, especially in instances where consultants
have to do their work.

If you add performance bonuses and perks, the four municipal managers
from Dikgatlong, Emthanjeni, Ga-Segonyana and Gamagara also earned
more than R1 million.

Municipal managers are not the only ones earning huge salaries. Chief
financial officers are also raking it in.

A municipal manager and a chief financial officer must have certain
skills and must be compensated for those skills. However, the audit
outcomes for 2013/14 shows that municipalities are in distress. For
example, the Ga-Segonyana municipality has received nothing but
disclaimers since the 2008/09 financial year. Yet the chief financial
officer has a total remuneration package of R809 387 and the municipal
manager has a total remuneration package of R1.13 million. Similarly,
the Tsantsabane municipality has received only disclaimers for the
past six financial years. The chief financial officer has a total
remuneration package of R967 200 and the municipal manager R1.326
million.

Are we compensating skills or are we just compensating political connections?

New regulations come into effect in 2014 which caps the salaries paid
to municipal managers. The total remuneration paid to municipal
managers must consider competitiveness, flexibility, affordability and
consistency.

It is clear that many municipalities in the Northern Cape simply
cannot afford their senior managers.

 

Issued by DA