The salary overpayment for the three financial years till June 30 2020 was reported to amount to R491 368, 96, that were paid out in the form of annual bonuses.
THE MUNICIPAL manager at Umsobomvu Municipality Amos Mpela is receiving a salary that exceeds the maximum salary package for a category 1 municipality.
The investigation team that was appointed to investigate allegations of maladministration and misconduct at the municipality, has recommended that disciplinary action should be taken against him as well as the accounting officer and chief financial officer for allowing the overpayments to happen.
The salary overpayment for the three financial years till June 30 2020 was reported to amount to R491 368, 96, that were paid out in the form of annual bonuses.
It was recommended that an acting allowance of R21 335, 73 that was paid to him for three months during 2017 should also be recovered in full.
His contract was extended from July until September 2017 after his contract expired where his annual salary of R1, 159 550, 88 was adjusted to R1, 244 893, 80, without a council resolution.
The investigation indicated that Mpela was not eligible for employment as his highest qualification was a diploma in business management that he obtained from Damelin college.
“The mayor acknowledged that the municipal manager did not have the requisite qualification but indicated that his experience was of the utmost importance for the municipality.”
The report indicated that Mpela was supposed to be offered an all-inclusive remuneration package of R903 016 plus a seven percent remote allowance that added up to R966 277,12. “Council took a resolution to appoint at midpoint in contravention of the regulations on the remuneration of senior managers.
“Subsequent to that his all inclusive package at midpoint was R1,003 351 plus seven percent remote allowance that added up to R1 073 585, 57.”
It stated that the mayor applied to the MEC and the minister to waive his remuneration package because he would have earned R91,882, 57 less than the section 56 managers.
“The Minister concurred with the application to waive the remuneration of the municipal manager and offer him a maximum package to the value of R1, 1 03 686 plus a seven percent remote allowance adding up to R1, 180 944.
“The remuneration package of R1, 244 98, 03 was adjusted to R1,,180 944 according to the outcome of the waiver application by the Minister.”
The report indicated that the mayor wrote a report to the MEC on October 17 2017 to waive the retention since Mpela had reached the age of 65 years on June 6 2017.
The report added that the mayor, motivated that the municipal manager was “a capable employee with a number of years of experience in local government”.
The mayor pointed out that Mpela was responsible for the administration of the municipality since 2007 and that without his scarce skills effective service delivery would be compromised.
The Minister approved the extension of his contract from October 1 2018 until a period not exceeding one year after the local government elections.
The investigation team stated that the actual salary paid to Mpela for the period October 2017 to June 2018, exceeded the upper limit published in the gazette notice.
It advised that the salary records after June 30 2020 should be made available for scrutiny, to determine the full amount that was overpaid to him.
“The annual bonuses should have been inclusive of his annual remuneration.”
