R300 000 pay hike puzzle

A plan by Mbhashe municipality to increase its municipal manager’s annual salary by more than R300000 was scrapped from a council agenda at the last minute yesterday.

The item on the salaries of senior managers was supposed to have been discussed under confidential matters during yesterday’s council meeting.

The Daily Dispatch could not establish why it was scrapped.

Increasing the municipal manager’s salary without approval from the Minister of Cooperative Governance and Traditional Affairs (Cogta) would mean the council would have gone against an instruction on limits of packages payable to municipal managers and senior managers.

Mbhashe municipal manager Slulami Poswa’s salary is currently under R800000 as the municipality’s application to waive current regulations has yet to be approved by Cogta.

In terms of the regulations, councils are awarded points on the basis of total municipal income, equitable share and the total wage bill of the municipality.

Mbhashe is a category three municipality, which is supposed to pay its municipal manager between R765880 and R984710, while the salaries of managers directly accountable to the municipal manager fall between R581810 and R748050.

Government regulations make provision for municipalities to apply for a waiver from the minister after consultation with the MEC.

In a report to council, of which the Daily Dispatch has a copy, mayor Nonceba Mfecane wrote that attempts by the municipality to get a waiver had failed. She recommended Poswa’s remuneration package of R1.1-million be approved by council and back-dated to February this year.

The Daily Dispatch has also seen a letter from Mfecane applying for the waiver of regulations.

The letter, dated December 1 2014, stated that the municipality wanted to offer R1.05-million to Poswa – an amount lower than the one written in her report to council.

It was also signed by Cogta MEC Fikile Xasa, giving the municipality’s request the nod.

Council speaker Mkhululi Mcotsho yesterday denied the municipality wanted to increase Poswa’s salary, and said he did not know of Mfecane’s report to be presented to council. “I have no knowledge of that. There are no such plans,” he said.

Xasa yesterday said the department was being consulted by municipalities seeking to apply for waivers.

However, the department was not getting responses from national Cogta. He said the problem with the regulations was that the municipal manager would be paid less than managers he supervised.

“I have asked the head of department to assemble a team to advise on how the MEC should proceed in advising municipalities.

We want to keep the spirit of the circular, which says salaries must be regulated. In trying to achieve that, however, we should not disrupt the way of operation of municipalities.”

Mfecane’s phone was on voicemail. — abongilem@dispatch.co.za

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