Lesedi Local Municipality spends big to get rid of unwanted employee

Even though there was an option on the table that would have seen Lesedi Local Municipality (LLM) spend a little more R60 000 to end a long standing dispute with suspended Municipal Manager Ayanda Makhanya, it was not used and  instead the man who had to vacate his office following corruption allegations will receive a further R541 339.80 as a parting gift.

This exercise has now cost ratepayers approximately R1 841 339.80.

One of the reasons Makhanya was suspended is that he is alleged to have given himself a ridiculously inflated salary increase.

In a baffling turn of events at a special counsel meeting on Wednesday, a proposal to pay out Makhanya’s contract in full was passed. LLM therefore decided not to make use of an escape clause in his employment contract which indicated that either of the parties could end the standing five-year contract that was in place with only two months’ notice. His current contract ends on 12 August 2017.

The special council meeting – the second in a matter of a week – was called on very short notice.

Click here to read more on the Municipal Madness that is going on

The total amount owed to Makhanya is R681 339.80 (he was on earning approximately R100k per month cost to company) and it was agreed that the legal fees which amounts to  approximately R140 000 would be deducted from the money owed – leaving Makhanya with a healthy R541 339.80 gross pay out.

If the two month escape clause was implemented council would only have had to give him about R60 000 after it had subtracted R140 000 in legal fees from the R200 000 he would have received.

Makhanya has been on full paid suspension for no less than 16 months and the corruption investigation was supposed to have been completed within the first three months.

This means that for a minimum of 13 months (Heraut had previously projected that it was only 10 months) LLM has spent R100 000 a month (or R1.3 million) on a salary for one man who, in this time, did absolutely nothing.

What should raise further alarm to the Public Protector’s office that has vowed to investigate corruption charges at LLM, is that despite several requests Makhanya’s employment contract was never emailed to opposition parties and that they only heard of the clause when Executive Mayor Lerato Maloka read it to council  on Wednesday.