Fat cat rewards for incompetent managers

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COGTA (Co-operative Governance and Traditional Affairs) has come under fire from the DA in KZN regarding five local municipalities that are under administration, yet the Municipal Managers continue to enjoy inflated salaries.

Mtubatuba Municipality is one of the five and has been under administration the longest, since September 2012.

COGTA is currently controlling the five dysfunctional municipalities and recently revealed the facts and figures behind the process.

The DA’s George Mari, KZN spokesperson on COGTA, is concerned that, ‘the very people responsible for running [the municipalities] into the ground remain employed, earning hugely inflated salaries, which is a flagrant abuse of public funds.’

In response, COGTA MEC Nomusa Dube-Ncube confirmed the continued employment of those Municipal Managers heading up the dysfunctional municipalities.

The MEC also confirmed their annual salaries of almost R1-million each. Municipal Managers have a binding contract with their employers but, while under administration, their functions are subject to ratification by the administrator.

For the duration of the municipalities’ administrative contracts, the provincial government spends about R135 000 per month per administrator. The MEC stated, however, that all administration contracts will be finalised by the end of September.

Mtubatuba Municipality has seen some improvements in the last two years. It moved from a Disclaimer Audit for the 2011/12 financial year to Qualification in the 2012/13 financial year.

It has reduced its operating deficit from R27-million to R8-million and cleared its bank overdraft of R6-million in June last year. Monthly collections have increased from R900 000 to between R1.3 and R1.6-million.

While the DA notes certain improvements, Mari said there should be no place for Municipal Managers who are unfit for their posts. The DA has challenged COGTA to review all Municipal Managers’ employment contracts, saying it is unacceptable for them to earn ‘fat cat’ salaries after allowing their municipalities to become dysfunctional.