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Management & Leadership News South Africa

Big raises for city officials

The spending of R122m on hiking the wages of Johannesburg municipal officials has been branded "doubly offensive" in light of the city's service delivery failings and the dire financial straits most of its residents are now in.
The salary increases for Jo'burgs municipal officials cannot be justified says Lee Cahill. Image: Nongpimmy
The salary increases for Jo'burgs municipal officials cannot be justified says Lee Cahill. Image: Nongpimmy Free Digital Photos

The pay increases were signed last week by Minister of Co-operative Governance and Traditional Affairs Lechesa Tsenoli after consultations with Gauteng MEC for local government and housing Ntombi Mekgwe.

The increases - gazetted on January 29 and backdated to July 1 - will benefit 230 councillors, 17 committee chairmen, 10 members of the mayoral committee, the chief whip and the speaker.

Executive mayor Parks Tau - who earns R1,068,153 a year - will not get an increase. The Independent Commission for the Remuneration of Public Office Bearers has said that there should be no pay raises for officials earning in excess of R1m.

It also recommended that politicians earning less than R500,000 receive a 7% increase, those earning between R500,000 and R800,000 get a 5% hike, and those earning between R800,000 and R1m a 4% increase.

Hikes spark anger

Tsenoli approved a 4% increase for council speaker Constance Bapela, who currently earns R888,704 a year, and for chief whip Prema Naidoo, who earns R833,158 a year.

According to its annual report for 2012/13, Johannesburg spent about R7.5bn on "employee-related costs".

"The cost to the city to implement this increment is estimated at R122,230,000 exclusive of the data-card allowance of R300 per councillor which amounts to R936,000," according to a document tabled at the council meeting last week.

The document recommended that payment is effected at the earliest possible date, but no later than the February salary run.

The new financial arrangement includes improved cellphone packages that will cost ratepayers R5.4m a year, including Tau's monthly cellphone allowance of R3,319.

Bapela, Naidoo, members of mayoral committees and other councillors will each receive a monthly cellphone allowance of R1,656.

President Jacob Zuma recently set aside R45m for salary hikes for 34 cabinet ministers, 33 deputies, 52 chairmen of parliamentary committees, 53 parliamentary whips, opposition party leaders, 200 ordinary MPs, nine premiers, 90 MECs and 331ordinary members of legislatures.

Founding member of the Joburg Advocacy Group Lee Cahill said the increases were unjustified.

"Under any circumstances, funding large, bloated and inefficient local government structures can't be justified, but it is doubly offensive given the state of governance and service delivery in Joburg," said Cahill.

"And this is without going to the heart of the matter, which is the fact that the ever-growing gap in earnings between the people and the officials meant to serve them makes a mockery of our democracy. No corporation would reward its top management in this way in the face of such poor performance. It simply cannot be justified," Cahill added.

Source: The Times via I-Net Bridge

Source: I-Net Bridge

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