Insurance blow for councillors

Co-operative Governance and Traditional Affairs Minister Pravin Gordhan

Co-operative Governance and Traditional Affairs Minister Pravin Gordhan

Published Mar 28, 2015

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Johannesburg - Co-operative Governance and Traditional Affairs Minister Pravin Gordhan has placed a ceiling on the amounts for which municipalities may insure councillors’ properties and vehicles against loss or damage during service delivery protests or civil unrest.

In addition to a cap on remuneration packages for councillors, mayors and council Speakers this year, Gordhan has introduced a limit on the values to be covered by special risk insurance, recently adopted by the government to cover councillors’ properties.

Councillors’ homes have been often burnt down in service delivery protests.

Two weeks ago residents of Siyathemba in Balfour, Mpumalanga, set alight the home of Dipaliseng mayor Sara Nhlapho and several other buildings in protest at a proposal that their town be incorporated into the Lekwa Local Municipality, which has its seat in Standerton.

The residents demanded that their area become part of Gauteng.

Ratepayers will have to shoulder the maximum costs of providing insurance cover for more than 10 000 councillors for up to R1.5 million for a house and R750 000 for a vehicle.

The special risk cover did not previously have a limit.

“It is the responsibility of the councillor to provide all necessary details to the municipality, upon request, regarding properties, assets and beneficiaries to be covered by the special risk insurance,” Gordhan said.

Last year, risk benefits provided for councillors at municipalities’ expense were extended to include life cover and personal security for mayors and councillors, subject to a threat analysis by the SAPS.

This week, Gordhan published in the Government Gazette details of limits on salaries, allowances and benefits for the various council members in 278 municipalities.

This came as SA Local Government Association (Salga) delegates, taking part in a three-day assembly in Midrand, urged Gordhan to increase their travel allowances.

Delegates also said the salaries proposed for senior officials were so low they would not attract competent officials to struggling municipalities.

According to the new remuneration packages for councillors, the mayor of Joburg, Parks Tau, will earn up to R1.2m a year, up from R1.1m, while a Speaker will take home less than R1m a year.

Travelling allowances will be limited to 25 percent of the annual remuneration package and councillors appointed to governance structures will receive a limited sitting allowance of R908 a day, regardless of the number of meetings attended on a specific day.

Gordhan has not increased cellphone allowances.

Instead, he has prescribed a limit of up to R3 485 a month for a full-time mayor, deputy and Speakers, while councillors will be limited to receiving R1 739 a month.

Gordhan told a Salga assembly this week: “We have financial limitations in South Africa.

“Don’t expect the national fiscus to fund you willy-nilly. The question is, how do you do more with less – and for the next few years, that’s all you’re going to hear.”

Salga spokesman Sivuyile Mbambato said he was unable to respond to the Saturday Star’s questions, “given the short space of time to accommodate your enquiry”.

Saturday Star

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