GEORGE NEWS - Can Georgians really afford to pay salaries of over R2m to the directors of George Municipality?
This is the question Darryll Sauer wanted the public to ask with his Facebook post on 13 August that caused an online outrage.
Sauer is a former chairperson of the ANC George. He announced his withdrawal from all political activities in 2020.
His post followed the Council's decision to approve a waiver application to the Minister of Co-operative Governance and Traditional Affairs (Cogta) related to upper salary limits for senior management positions, as permitted for a grade 5 local municipality. The matter was concluded as a confidential item on the agenda.
Although the DA George's constituency head, Nomafrench Mbombo, had urged the public two weeks ago to rely on facts, not 'Facebook rumours', George Herald meanwhile ascertained that Sauer was not far off the mark with his figures when he noted increases from R1.3m to R2.3m. The total renumeration packages for at least six directors on a T-Grade 19 are now R2 033 795.20.
"My point is," says Sauer, "the people of George struggle to get by.
These salaries are exorbitant and come from the pockets of the poor. I can still understand if a municipal manager with a five-year contract receives a salary of R2m, because they are only employed for a certain term, but these directors are permanently employed. How is this fair to the people of George?"
Sauer says he was approached by a concerned whistleblower within the DA.
Darryll Sauer
Socio-economic reality
Dr Dennis Farrell of the Business Café added his voice, saying these figures are out of touch with the socio-economic reality of residents, with nearly half the population dependent on social grants.
"The municipality's 2023/24 annual report highlights deep inequality," says Farrell. "Of George's 294 929 residents, 137 236 rely on Sassa grants, which amounts to 46.6% of the population. Poverty, inflation and high unemployment continue to weigh heavily, with many households living in substandard conditions. Despite this, Council approved the latest draft budget, raising questions about oversight."
According to PayScale, says Farrell, the average salary in George is about R15 583 per month. "Yet, based on the municipality's approved staff budget of R866.5m for 1 500 employees, the average monthly salary works out to R48 142, excluding bonuses and additional benefits such as 80 days' sick leave over three years (compared to 36 days in many sectors).
"With a Gini coefficient* of 0.61, George has among the worst levels of income inequality in the province. Inflated senior salaries further entrench this gap," says Farrell.
Dr Dennis Farrell
Waiver approved
The municipality's spokesperson, Chantèl Edwards, says the municipality urges the public and media to rely on official information rather than social media speculation.
"Any adjustments to senior manager salaries form part of a nationally governed process ... and no increase can occur without formal ministerial approval," she said.
"The process ensures that senior roles are compensated in a cost-effective, consistent, internally equitable, externally competitive manner that is aligned to the achievement of the municipalities' objectives while providing a uniform remuneration framework for local government, within the approved budget, and in accordance with national legislation."
Unlike Task (Task Job Evaluation System), which allows annual and notch increases for staff through collective agreements, Tarp (Total Annual Remuneration Package ) covers senior managers and does not provide automatic increases, with any adjustments requiring ministerial approval.
Edwards says since the Council item was confidential, the municipality cannot provide details beyond what is publicly gazetted. Council is allowed to request a ministerial waiver of prescribed requirements in exceptional circumstances.
In her comment on the online article FB post about George directors' 'massive increase' is 'misleading' (15 August, journalist Ilse Schoonraad), Mbombo says George Municipality faces a salary creep with which some deputy directors are earning more than directors and even the municipal manager, despite carrying far less responsibility.
She says fixing this is not a DA George invention. "It is a nationally controlled process governed by the minister of Cogta. This is about aligning pay structures to ensure senior roles are paid fairly, within the existing budget, and in line with national legislation - not about 'handouts' or 'secret deals'."
A DA politician who asked not to be named told Schoonraad that capable municipal directors are in high demand and that the municipality is forced to pay them well in order to keep them and their expertise in George.
Municipal accounts
Adv Gert van Niekerk of the FF Plus says George's municipal accounts have increased by 44% over the past four years under DA control.
"It is shocking. The FF Plus' standpoint is that the scale for upper limits exists for a reason - municipalities should stick to it and keep their funds for service delivery, not salaries," says Van Niekerk.
Adv. Gert van Niekerk
"Granted, George is in a relatively good financial position, but just look at the loans taken out over the past year - it's a lot of money. Under special circumstances, a municipality can apply, with the minister's approval, to exceed the upper limits. At first it was just a drop, then it became a trickle, and now it's the norm.
"Cogta only worries about one thing - can the municipality afford it? And yes, we can. So it gets approved within the framework of the law. That's how people end up earning astronomical amounts of money. But where will it end? The item was tabled in Council, and the DA has the majority. This is a DA decision."
*The Gini coefficient is a way to measure income inequality in a country, city or community. It's a number between 0 and 1. The higher the Gini coefficient, the more unequal the income distribution is. A Gini of 0.61 (like George Municipality reports) equals very high inequality. It means a big gap between the rich (such as well-paid officials and affluent households) and the poor (like farm workers or residents in informal settlements).
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