Cape Town - In what could become the DA’s first controversial decision of its new term of office, the city council is considering golden handshakes of more than R7 million to terminate the contracts of two of its executive directors.
After the open agenda of Wednesday’s full council meeting, councillors will be asked behind closed doors to endorse a payout of R3.5m to Gerhard Ras, the executive director of compliance and auxiliary services and R3.4m to Ivan Bromfield, the executive director of human settlements.
Sources said the terminations were “ridiculous”, “shocking” and “completely unacceptable” and questioned why they were being discussed in private if the process was above board.
The pair signed five-year contracts with the city which end in April 2018.
City spokeswoman Priya Reddy said the city could not comment on items that might appear on the confidential agenda.
“If the item goes to council, the city will comment once the issue has been debated in the chamber and resolved,” she said on Tuesday.
Included on Wednesday’s public agenda are the new yearly contracts of all executive directors, including Ras and Bromfield, signed in June. As section 57 employees under the Municipal Systems Act, executive directors have to renew their contracts and performance targets annually. Ras and Bromfield have the longest period of their five-year contracts left, with the contracts of other executives, including the city manager, coming to an end at the end of the year or in the first half of next year.
DA insiders said the planned terminations were baffling since both Ras and Bromfield have received glowing performance evaluations which are part of the public record.
Ras’s sudden appointment from mayco member in the metro to executive director in 2013 was met with much controversy as a “job for pals” appointment by mayor Patricia De Lille.
Ras has a long history with De Lille as a lawyer and spokesman for the Independent Democrats. He is also a former municipal manager in the George and Matzikama municipalities. In 2006, he was ordered to repay almost R2m for a golden handshake received after terminating employment at the Matzikama municipality, after the payment was found to be irregular.
“When he (Ras) was appointed we said it was cronyism and we predicted this. It’s exactly what is happening now. He will leave with millions,” said a source.
Ras did not respond to calls for comment.
Bromfield, a medical doctor, has more than a decade of experience in the City of Cape Town, having held three executive director portfolios over the past eight years. At the time a director in the city health department, he took over as executive director from the late Ivan Toms who died in 2008 - a position Bromfield held for almost five years. He then served as the executive director of social development and early childhood development for almost two years, before taking up the post of executive director for human settlements in January last year.
Bromfield declined to comment when contacted on Tuesday.
Section 57 employees earn annual salaries of up to R2m.
An insider questioned: “It’s absolutely shocking. There’s no reason for terminating their contracts. They are not performing badly at all, or at least that’s what their assessments say. Why would council be severing ties?”
Said another source: “Something’s not right.”
Cape Argus