MAKHADO (LOUIS TRICHARDT) – In April this year, taxpayers once again had to foot the bill for the annual performance bonuses paid to the municipality’s suspended municipal manager and his seven full-time directors, totalling just over R606 000.

These bonuses are calculated at 20% of their annual remuneration packages. Apart from the Director Finance, who earns almost R415 000 a year, all other directors earn about R392 000 a year. The municipal manager, Mr Reuben Rambado, who was suspended by Council last week on allegations of corruption and nepotism, earns almost R668 000 annually. These remuneration packages for the municipal manager and the directors directly accountable to him are for the 2003/4 financial years as advertised by Council in November last year. It is possible that their remuneration packages could even be more for this financial year.

It is said that, apart from one director who received only 80% of his annual bonus for not making his target, all other directors and the municipal manager received 100% of their bonuses. Ironically, the payment of a R110 000 performance bonus to Rambado last year is still shrouded in controversy. Although Council remains tightlipped over the exact details of the charges of corruption and nepotism against Rambado, it is widely speculated that the payment of the R110 000 bonus forms part of Councils investigations.

As for the bonuses paid in April this year, the six directors who received 100% of their performance bonuses each pocketed just less than R71 000. This is apart from their monthly salaries. The one director who received an 80% performance bonus received just more than R60 000. Rambado pocketed just less than R121 000 as part of his performance bonus.

Mr Peter Magwala, Council’s Director: Corporate Services, confirmed the payment of the bonuses this week. He said that the bonuses were approved by Council and that they were paid in accordance with the directors’ and municipal manager’s employment contracts.

When asked to be more specific about the bonus amounts paid to each director and the municipal manager, Mr Magwala said that he could not give specific figures at present. He quoted from the Local Government: Municipal Systems Act, merely stating: “... the salary scales of the municipal manager and every manager will be published on or before October 31 this year. You are thus advised to wait until the time as indicated.”

In the meantime, many described the payment of these bonuses as ludicrous. Several taxpayers asked why such excessive “bonuses” should be paid to already very “wealthy” civil servants earning between R500 000 and R750 000 a year.