Muni loses big with transfer of licensing to province
The transfer of the licensing department from STLM to the province is complete.
A total of 51 employees have already been transferred to the provincial Department of Community Safety, Security and Liaison during the takeover of licensing services from the municipality by the province after the department serviced the municipality with a takeover demand in March.
Seven employees have not submitted transfer papers, providing varying reasons, most notably, medical aid-related fears.
The municipality had to release five of six bursars from contractual obligations due to the takeover, with one withdrawing from the bursary programme.
The municipal finance department was engaged for the payment of pro-rata bonuses and accrued leave, which were paid out at the end of July, while long service recognition will be recognised for employees who migrated their full pensions to the government pension fund and employees with less than 10 years tenure will not benefit from continued medical aid benefits after retirement.
According to the preliminary agreement regarding the municipal facilities in both Middelburg and Hendrina, the municipality will remain responsible for the holistic maintenance and repairs of buildings.
A total flat rate for building maintenance, as well as water, electricity and sewage, have been included in the monthly rental amount against the provincial department.
The flat rates are R13 000 for maintenance (Middelburg) and R2 500 (Hendrina), R3 413 for water (Middelburg) and R1 500 (Hendrina), R3 071 for sewerage (Middelburg) and R1 250 (Hendrina) and R23 229 for electricity (Middelburg) and R2 026 (Hendrina).
The total carrying value of assets set to be transferred amounts to just over R1.1m, which includes air conditioners, CCTV cameras, and fire extinguishers.
Transport assets, such as computers and phones, will be handed back to the municipality.
The lease agreements for the Middelburg and Hendrina buildings, at 50% occupation in Middelburg and 25% in Hendrina, amount to R37 490 and R31 700, respectively.
The monthly income for the municipality amounts to a combined R119 179 per month.
Almost R6.2m had to be transferred to the department from the municipality, relating to licensing revenue for June.
A staggering R7m will also have to be paid in bonuses and accrued leave.
A further R719 688 is also due by the municipality for discrepancy back pay.
Licensing services will continue to be rendered from the existing building at the municipality.
