From 2018 BUT Still Relevant – Councillor and Mayor Salaries

A copy of an article first published in August 2018:

According to Stats SA the average annual salary in South Africa, including bonuses and overtime was R238 296 (as at February 2018)

According to a 2016 report on BusinessTech the average annual salary in South Africa for a Municipal Councillor was R511 000 (or R563 377 adjusted for 5% increases over two years).

A January 2016 report on StatsSA notes the following:

Municipalities spend more money on their employees than on any one of the services provided to their clients/customers. Data from Stats SA’s latest Financial census of municipalities provides interesting insight into the patterns of salary costs across municipalities, as well as over time.

Employee-related costs took up the largest chunk of total municipal spend/expenditure for the 2014/15 financial year. For every R1 spent by South Africa’s 278 municipalities during the 12 months (July 2014 to June 2015), 26c was spent on salaries. Other budget items included electricity services (22c), bad debts (7c), the provision of water services (5c), contracted services (5c), and repairs and maintenance (5c). Other expenses (30c) included fuel and oil, audit fees, hiring costs, depreciation, remuneration of councillors, etc.

Despite taking up the largest share of expenditure, the proportion spent on salaries by all municipalities has fallen slightly, from 27% (R45 billion) in the 2009/10 financial year to 26% (R73 billion) in 2014/15.

Over the same period, Nelson Mandela Bay had the largest increase in salaries compared with the other metropolitan municipalities (rising by 75%).

A report from National Treasury (Table SA23 Salaries, Allowances and Benefits per Councillor/Manager for 4th Quarter ended 30 June 2010) dating back to 24 March 2011 shows that the total expenditure by the Nelson Mandela Bay Metropolitan Municipality on Council alone amounted to R49 552 560. Apply a minuscule 5% increase to that amount each year and we get a figure of R73 211 699 per year that council costs the citizens of Nelson Mandela Bay Metro.

More disturbing is that in 2010 our Executive Mayor was the highest paid Metro Mayor in the country on R1 047 860 – apply a 5% annual increase from 2010 and the estimated Mayoral Salary of today is R1 474 444 per annum.

In the past Councillors and Mayors were reimbursed direct expenses and did not receive a large salary which attracted people of means comfortable with serving the citizens of South Africa. One would assume that these Councillors were well aware of the fact that time meant money and applied their minds diligently.

Now this is where life gets interesting:

All councillors are obliged to ‘tithe’ a portion of their salary back to the political party that they represent.

This amount ranges from 3 to 15% depending on which party and whether the party needs money to campaign local or national elections.

Essentially the political parties are being financed by the citizens of South Africa via this ‘tithe’.

Estimates from sitting Councillors are that 80% of their time is spent on party politics and only 20% of their time on actual Ward work.

Which brings us to the BIG questions?

1. Why do we pay these people so much money?
2. Why do we allow Party Politics to interfere with Service Delivery?

The recent, and all too regular, events in council where we have all the members of the kindergarten squabbling over power and failing to deliver prosperity to our city is in a word; “SHAMEFUL”.

The time has come to look critically at the model we have when it comes to Councillors and their lack of attention to the real matters of service delivery and kick that model to the curb. We need councillors to actually talk to their wards and shine. Those that prove themselves in the trenches can then go on to Provincial and National government and earn the big bucks as full time career politicians.

The BIGGEST questions are:

1. Would you vote for a political party whose members were: Of standing in the community, had a record of volunteer service, committed to ONLY being reimbursed essential expenses, spent 80% of their Council time on Ward business, were not forced to ‘tithe’ back to their mother party and returned to overseeing the administration of the municipality in a truly lean fashion?
2. Would you be willing to be THAT citizen who stands for election on the above principles?

Interested? Contact me HERE and let’s get the conversation started.