Performance bonus by default for (absent) municipal manager

Makhado municipal manager Ms Faith Muthambi is again in line for her annual performance bonus.

Looking back at the municipality’s track record over the past year, many readers might ask themselves how it’s even possible for Council to consider paying their administrative head a performance bonus. This question is especially relevant when taking into account that, during the same year, the Soutpansberg Ratepayer’s Association officially declared a dispute against the municipality with regard to poor service delivery. Add to this the fact that Muthambi was on suspension for a total of five months during this time, and the idea of a performance bonus becomes even more inconceivable. Muthambi’s suspension by Council, following allegations of mismanagement and maladministration, was lifted in September this year when the Labour Court ruled that her suspension was unlawful.

The truth of the matter is, however, that Council will apparently have no other option but to pay Muthambi her performance bonus as Makhado mayor, Cllr Glory Mashaba, has failed for the third consecutive year to sign Muthambi’s performance agreement as required by the Municipal Systems Act of 2000 with regard to Section 57 managers. A performance agreement determines the KPIs (key performance indicators) and measurable targets to be used when evaluating municipal managers or managers directly accountable to municipal managers in determining their annual performance bonus. These agreements have to be renewed each year. If such an agreement is not signed by the mayor, however, that employee is, by law, entitled to 10% of his/her annual salary without having to be evaluated. With Muthambi earning around R820 000 a year, this means that she is entitled to just over R80 000.

The issue of Muthambi’s annual performance bonus recently served before Council’s executive committee (Exco). Although the Exco agenda gives a detailed explanation regarding the issue, no reasons are given as to why Mashaba once again failed to sign Muthambi’s performance agreement. Exco’s recommendation in this regard is that it be noted that Council did not conduct an assessment of performances of the municipal manager in the 2007/8 financial year, in view of the fact that the mayor had not signed a performance agreement. Secondly, that in order to comply with the provisions of the Local Government Systems Act of 2000, a bonus calculated as 10% of the cost-to-employer remuneration for the 2007/8 financial year which was payable by August 2008, be paid to Muthambi and, thirdly, that the Exco take the necessary steps to ensure that a performance agreement for the 2008/9 financial year be duly signed by the mayor and municipal manager. These recommendations, however, still has to serve before a full council meeting.

News - Date: 07 November 2008

Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.

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