South Africa

Municipal manager under fire after giving himself unauthorised salary increase

A municipal manager for North West council is still on duty despite being found by a forensic investigation to have allegedly illegally increased his salary and given himself allowances without council approval.

The probe, commissioned in November last year by mayor Thabo Jacobs, found municipal manager Clement Letsoalo allegedly raised his salary from R1 046 220 to R1 370 071 without a council resolution or the mayor’s approval.

He allegedly also gave himself a R1 000 cellphone allowance and travel allowance in excess of R28 000 with no motivation or reasons given for their need or a council approval.

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He also allegedly failed to sign his performance contract within the stipulated 60 days and thereby contravened the Municipal System Amendment Act.

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The investigation recommended that Letsoalo be suspended with immediate effect, his appointment be reviewed and his contract with Kgetlengrivier Municipality be declared null and void. The report also recommended that Letsoalo pay back the overpayment for benefits he received and disciplinary measures be taken against him for gross dishonesty.

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Letsoalo failed to respond when approached for comment since Thursday last week. But mayor Jacobs confirmed that the probe was instituted and found Letsoalo delayed to sign a performance agreement within the stipulated 60 days.

“When he finally signed on 26 July 2023, he (had) violated section 57 of the Municipal Systems Amend Act.”

Jacobs said the council did raise concern about Letsoalo’s remuneration package and took a resolution on 18 August 2023 that the matter be investigated. It asked for Letsoalo to pay back the money he owed.

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He said the probe found Letsoalo failed to comply with the act and recommended that his employment contract with Ketlengrivier summarily become null and void. His performance agreement was to be declared null and void and deemed to have no legal effect.

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The mayor said the investigator found that the municipal manager, in terms of the Local Government Upper Limits of total cost remuneration packages payable to the senior managers Category 2 was entitled to an annual remuneration package of R 1 046 220 and not R1 370 071 that Letsoalo awarded himself.

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“The investigation further found that the remuneration package that the municipal manager had awarded himself far exceeded the maximum point of the packages provided by the (government) gazette,” Jacobs said.

The report found that Letsoalo did not wilfully resign from his previous employers at Dipaleseng Local Municipality. “The report found that Mr Letsoalo left under a cloud of investigation of his malpractices,” Jacob said.

Letsoalo allegedly resigned from Dipaleseng allegedly in order to avoid a disciplinary process that could have rendered his employability in the government systems impossible.

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“Mr Letsoalo was obliged as a potential employee of the municipality and aspirant ex-officio member of council to disclose any issues that may bring the municipality into disrepute. In this instance, he acted in bad faith,” Jacobs said.

He said the council was unable to implement the recommendations because several attempts to have the report tabled before council were “perpetually frustrated” by some councillors who allegedly protected the municipal manager.

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By Eric Naki
Read more on these topics: municipalitiesNorth West