Interesting letter from the chairman of the ratepayers association in Knysna: (Jaap Kelder’s replies are in italics…)
Dear Mr Kelder,
My questions to you are the following – if you are not in a position to answer them, please forward this email to whoever is in a position to answer them :
Cape Town – population 3,497,097
Total packages :
MM R1,603,619
CFO R1,291,826
George – population 135,409
MM R987,000
CFO R832,000
Mayor R610,000
Knysna – population 51,468
MM R1,321,000
CFO R1,153,000
Mayor R605,000
Deputy Mayor R487,000
Exec Committee Member 1 R458,000
Exec Committee Member 2 R456,000
Speaker R484,000
16 Councillors R2,048,000 (R128,000 each)
Director Community Services R865,000
Director Corporate Services R991,000
Director Planning& Devt R991,000
Director Technical Services R1,253,000
Director Strategic Services R991,000
1. According to the budgets the salaries of the Directors and top brass are in excess of George other than the mayor. But, George population at 2,63 times Knysna and thus size of job surely says that Knysna people are grossly overpaid ?. Everyone tells me that there is nothing we can do about these budgeted salaries as they can be approved without our input (who sets these massive salaries, and is there nothing we can do to have them reduced ???) Julle maak beswaar teen die oormatige salarisse en dien die beswaar by die munisipaliteit in. In terme van art 22 & 23 van die MFMA moet julle besware/insette op ‘n volle raadsvergadering bespreek word. As hulle dit doen is jy “ge-snoeker”. As hulle dit nie doen nie tree art 26 in werking !
2. Our Ratepayer Association almost disintegrated due to lack of interest in the town. I think the people felt that it had no relevance and the complaints made by it were fobbed off by the top brass. People have been much too complacent ! Due to my highly contentious letter, the town is fired up and want blood !!. (We hear that the mayor was escorted out of the “coloured area” meeting due to an angry and mainly COPE audience). We have a meeting scheduled for Thursday 28th May in Knysna town to try to get more town support for the RA and to give feedback on the budget. THE POINT HERE IS that yes, our resurrected RA has voiced objections to the budget and has received a reply of sorts. Not good enough !! Increased salaries include 11% increase for fixed packages – but from a massively skewed and high base !!!. Who set these massive salaries – are they not accountable ??. On Friday there is a council meeting to “consider” the budget.
Make 100% sure that your inputs have been discussed at this meeting. Make sure that you are there to listen and observe.
3. The budget contains R857,000 in “performance bonuses”. No one in the town feels that there has been anywhere near “outstanding” performance, and according to the 1/2 Yearly Audit Committee report there were 8 items of shortcomings in MSA (Municipal Services Act ??). The report says clearly that the main purpose of the PMS (Performance Management System) is NOT to provide bonuses for top officials, but rather to ensure the achievement of service delivery objectives. Top management should therefore ONLY be rewarded for “outstanding performance”. The report further says that NO bonuses can legally be awarded and paid PRIOR to the adoption of the PMS. Bonuses are dependent on the evaluation of performance against performance targets, which are based on those set for the municipality, which cannot be set prior to the PMS being adopted. The report claims the targets were “soft”, the public was not made aware of its rights to participate in the setting of KPI’s (key performance indicators) and performance targets. Council approved the recommended bonuses without the benefit of the Municipal Performance Report, the Audit Committee Report on Performance Management or the Auditor Generals Report on Performance Management. The council could not have taken AFFORDABILITY into account as it did not have the Annual Report. It is clear that we cannot afford these bonuses as is clearly reflected in the underbudgetting for essential repairs and maintenance. Study the provisions of the MFMA relating to performance bonuses carefully.
4. Entertainment and functions – under current economic conditions, the excessive wining and dining of top executives out of OUR funds is considered totally UNJUST. While they say there is no money, they have money to blow on food and drink at functions. And they want R800,000 on capital expenditure for for “executive and council”.
The main intention of this request is for you to advise me “what can be done to halt or reduce these massive salaries”, “terminate performance bonuses” until such time as proper evaluation takes place, targets are not soft, and the bonus is a REWARD for “excellent and outstanding performance” AND the town can AFFORD them ? See above. Refer also to circular 48 from the Dept of Finance which we circulated earlier.
One wonders why unions want 20% increases in the light of the skewed and excessive salaries that the bosses get. One manager asked me why his boss (a “Director”) gets R500,000 more per annum than he does – and he does the work !!!.
“No provision has been made for resealing of roads for 2009/2010. R10-R16 million was required over 2 years to catch up with resealing plans. Roads that cannot be maintained will return to gravel roads”. Add this point to your inputs into the budget.
Jaap, it may look like ours is a well run town and we are no-where near the total breakdown of other towns you are trying to help. We don’t want to get to that level of town where there is a breakdown of infrastructure. Prevention is better than curing ! There is absolutely no reason why residents should wait unitil everything has collapsed. A stitch in time saves nine !
Yours faithfully
Ian Stewart
Accountant
ian@outfin.co.za
Tel / fax 044 3826039
Knysna