At least 16 top executives across eight metros share more than R44m, even though only half achieved clean audits, according to auditor-general Tsakani Maluleke’s latest report on the metros’ 2023/24 financial statements.
Eye-watering details of the salaries and perks are likely to enrage residents and ratepayers navigating pothole-ridden roads, broken traffic lights and long water and electricity outages in spite of rocketing utility bills.
The packages have become even more controversial as urban blight takes centre stage in the run-up to the local government elections. Most visibly, the DA’s Helen Zille moved from Cape Town to Joburg to run as mayor and is attracting social media attention by “swimming” in potholes and embarrassing the ANC-led coalition.
There has also been an overwhelming public response to a report in the Sunday Times last week detailing the multimillion-rand packages enjoyed by heads of municipal entities in Joburg. Heads of 10 of the 13 entities in Joburg are paid above the R3.39m annual upper limit set in the Government Gazette, which publishes local-government salary guidelines.
Their pay has risen by about 26% since 2022, well above inflation and the 3.3% public-sector guidance.
By comparison, President Cyril Ramaphosa is paid just under R3.5m after a recent 3.8% salary hike.
The biggest winners are the city managers for Cape Town and Ekurhuleni, Lungelo Mbandazayo, and Kagiso Lerutla, who both get R4.8m a year but at least obtained clean audits.
Lerutla’s pay package comprises basic pay of R3.5m, pension and medical benefits to the tune of R590,000, a car allowance of R250,000, and a performance bonus provision of R490,000 a year, among other benefits.
Cape Town’s Mbandazayo’s R4.8m package comprises pension and medical benefits of R436,000, with a bonus provision of R360,000 a year.
eThekwini’s Musa Mbhele is the third-highest paid city manager, whose R3.8m package comprises a R794,000 car allowance and a R383,000 performance bonus.
Mbhele and his CFO, Dr Sandile Mguni, who earns R3.7m, including an R889,000 car allowance, also obtained clean audits from the AG in the last municipal financial year, even though the city has long lost its status as the country’s top holiday destination.
In her consolidated report on the audit of municipalities for 2023/24, Maluleke painted a grim picture of the financial state of the metros, with the exception of Cape Town, describing them as “concerning”.
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