MunicipalNews

Perks for poor performance

City managers take home performance bonuses

RATEPAYERS have questioned why five City of uMhlathuze senior managers have been granted performance bonuses in January for the previous financial year, despite the municipality’s dismal under-spending record.

This ironically comes after City Mayor Elphas Mbatha slated his officials last month for a shocking 13% spend of the capital budget with only three months to go before financial year-end.

The Zululand Observer learnt that three managers received 7% bonuses, one an 8% pay-out and a fifth manager an 11% bonus.

The bonuses ranged from R81 000 up to R128 000 and totalled just under R500 000.

The hefty incentives were approved at a closed Council meeting on 28 January and sent to the Department of Cooperative Governance and Traditional Affairs (COGTA) for ratification.

While the performance bonuses relate to the 2012/2013 financial year, ratepayers say the under-spending trend was also prevalent in the previous financial year.

‘It is absolutely ludicrous that these managers get a huge increase in January and in the next month, the Mayor slams the officials for not spending government funding for service delivery,’ said one irate ratepayer.

‘It does not make sense and is absolutely shocking. How could they have been awarded performance bonuses? The severe under-spending did not happen overnight. It hailed from the previous financial year,’ said another ratepayer.

Objected

Insiders told the Zululand Observer the initial motion to grant the senior managers 14% performance bonuses had been objected by opposition parties and was subsequently reduced for two managers and halved for three of the managers.

‘They reduced the percentage but we are still not happy. The under-spending and failure to spend the Municipal Infrastructure Grant (MIG) funding is a grave concern.

‘The senior managers did not spend the budget according to the prescribed requirements. No senior manager should get a performance bonus for this financial year,’ said ratepayers.

Meanwhile on Tuesday, Council reported that capital expenditure was only at R59.1-million (17.46%) as of 31 January.

Council was informed that at the end of January, a further amount of R62.6-million for orders had been placed with payment still to be made. The revised figure therefore stood at R121.7-million (35.93%).

City Mayor Elphas Mbatha said he was called to address the provincial legislature in November over the City’s under-spending.

‘On 28 January, we asked the Municipal Manager to submit a report on the reasoning behind the low capital expenditure, litigation against Council and the representation of the bid adjudication committee.

‘That report is still outstanding. We need a plan in place. If there is no plan, this may cripple the municipality,’ said Mbatha.

2 Comments

  1. Then they wonder why their workers go on strike and demolish everything in their path! That’s a disgrace to undermine their own race and comrades! Shame on you!!!!

  2. Is dat 4 a job well done or is it – let’s just see hw much more we cud get out of our positions dat we hv an nt worry abot de poor.

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