Too rich for a mayor's perks

Millionaire businessman Philani Mavundla is arguably the country's richest mayor - and has turned down his R700000 annual salary to work for free.

The newly elected ANC mayor of Greytown, a bustling town in the KwaZulu-Natal midlands, this week revealed that he had no need for his mayoral salary and perks.

Instead he will use the money to upgrade the town's pothole-riddled roads and create jobs.

"What's the point of driving in a big, black, expensive municipal car when ratepayers live in poverty?" he asked. "Some people go to bed without food."

According to the Integrated Development Plan, which serves as a strategic development guide for the municipality, more than 50% of Greytown's estimated 92300 population are unemployed while 24% earn less than R18000 a year.

The 43-year-old mayor, whose business interests range from construction to commercial farming, is investing his personal fortune in building a private hospital in the town.

Greytown currently has a state-owned 207-bed district hospital, which also serves surrounding rural communities.

The provincial department of health has already approved Mavundla's application for a 50-bed hospital that will feature a helipad.

His other projects include building the town's biggest shopping mall.

This week Mavundla boasted that his family owned "a fair share" of the town.

"We have invested substantially in Greytown," he said.

Mavundla's property portfolio in and around the town includes five commercial farms, a luxury hotel and lodge known as Propaganda, and several other businesses.

His family - he has two wives and 11 children - divide their time between his two palatial compounds, both of which have private cinemas.

One home near the town centre features 14 bedrooms and is estimated to be worth more than R10-million.

His other mansion has 27 bedrooms, 12 lounges, two swimming pools, gyms and garages for 12 cars.

He declined to disclose the value of this property, but acknowledged: "I've got the most expensive homes in Greytown."

Deeds records show that the average price for a home in the town is R420000.

The mayor also owns several commercial buildings and homes in Durban.

Born in the nearby village of Lilani, Mavundla dropped out of school and sold tripe, bananas and mealie meal in Clermont in Durban in the 1980s.

"I grew up being called banana boy," he said.

But he soon secured an apprenticeship as a boilermaker in Brakpan, east of Johannesburg.

Determined to succeed, Mavundla became involved in several government projects and later had a role in a company called Rainbow Construction which was awarded a R129-million contract for the construction of the C-Max prison in Kokstad.

"I've never looked back," he said.

Today, Mavundla's company, PG Mavundla Engineering, has been involved in numerous projects including the R8-billion King Shaka International Airport and the R1-billion Sibaya Casino and Entertainment Kingdom.

His company has a R1.2-billion stake in the construction of Eskom's R8.9-billion Ingula power station on the border between KwaZulu-Natal and the Free State.

The mayor, who slaughtered 20 cattle to celebrate Jacob Zuma's ascendancy to the presidency in 2009, said as long as he ran the municipality like a business, he would achieve enormous success in turning it around.

This week, barely a month in office, he launched an investigation into several municipal officials for alleged financial irregularities.

DA councillor Paul Buss said despite Mavundla's good intentions, the party would be keeping a watchful eye on him. - mthethwab@sundaytimes.co.za