The upgrading of the Makhado Municipality from a level 7 to a level 9 municipality resulted in salary increases estimated at R4.3 million.

The salary increases became effective from December last year. Some municipal officials received increases of R20 00 to R40 000 per annum. The municipal spokes-person has yet to supply the actual amounts and answer the queries di-rected at him.

The news of the salary increase, which was not in the original 2008/2009 budget, elicited mixed reactions. Some see the salary increase as long overdue, while others are concerned about the financial state of the municipality, especially in light of last year’s report from the Auditor General. Still others say that council has shown that it can move very quickly and effectively when it’s for their own pocket, since the increase was implemented even be-fore the approval of SALGA. Why then not move quickly and efficiently when it comes to service deliv-ery?

The Makhado Municipality is now on the same level as the Vhembe District Municipality. For the past decade or more, the Makhado Municipality, with some 650 000 people currently living within its borders, has never applied for up-grading.

“I do not regard the decision to upgrade as wrong; it was just taken too fast. A salary increase for the workers is justified,” said the DA member of the executive council, Mr Jacques Smalle.

The expenditure will apparently be included in the revised budget in January, but the question is whether the munici-pality can afford it and whether they can manage their financial affairs?

Last year’s report of the auditor general (AG) showed the shocking fact that in the financial year ending 30 June 2007, there was massive overspending.

“I regard the overspending of R20.7 million as unauthorised expenditure,” the AG wrote in his report. The actual operating expenditure totalled R272.3million and ex-ceeded the adjusted budgeted expenditure of R251.6million by R20.7million. Reading the AG’s report of inaccuracies, incompleteness and lack of supporting documentation is enough to give the ratepayer nightmares.

“In the time when Mr Solly Noor was on the council, we had no overspending. The correct method would be to get the financial affairs on a sound basis and then look at salary increases,” remarked a resident. Some are also of the opinion that the implementation of the salary increase in December, in the middle of the financial year, was illegal.

The councillors have had an increase in their allowance, apparently the 11% as stated by SALGA (South Africa Local Government Association). The increase was backdated, so that, on the December cheque, a part-time councillor received R16 000 in stead of the R11 000 before the increase. The January cheque would be around R11 200. There are 79 part-time councillors.

“Is it sustainable to pay all these councillors large allowances every month?” asked a ratepayer. The five full-time councillors receive an annual package of about R300 000 to R400 000.

The municipal manager (MM) and the directors are contractual appointments. The MM’s annual remuneration is in the order of R800 000. Apparently, the salary increases did not pertain to the contractual appointments. The other officials from post level one to the lowest post level received increases. The lowest two post levels, levels 16 and 17, are to be abandoned and included in post level 15.