Ramokgopa criticises austerity rules

04/04/2013. Executive mayor Kgosientso Ramokgopa talks to the media after delivering his state of the city address. Picture: Masi Losi

04/04/2013. Executive mayor Kgosientso Ramokgopa talks to the media after delivering his state of the city address. Picture: Masi Losi

Published Apr 1, 2015

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Pretoria - He has a top job in the city and a salary to go with it – but the capital’s first citizen would prefer more in the form of allowances.

Mayor Kgosientso Ramokgopa will be earning a pay package of just more than R1 177 639 a year in line with new determinations by Co-operative Governance Minister Pravin Gordhan.

Ramokgopa, as full time councillor and mayor, is also entitled to a maximum of R3 485 a month as a cellphone allowance.

The determinations were promulgated by Gordhan on March 25 and approved by the council at a special sitting on Tuesday.

They will be financed within the allocated budget and implemented retrospectively effective from July 1 last year, if Gauteng MEC for Co-operative Governance Jacob Mamabolo concurs.

Policy revisions on travel and subsistence allowances, reimbursement of out-of-pocket expenses, alternative accommodation and tools of trade will be submitted to the council in July.

Total remuneration includes basic salary, travelling and housing allowances, and contributions to a pension fund and medical aid scheme.

Speaker Morakane Mosupyoe-Letsholo will become the second highest earner in the metro at R951 083 a year.

The speaker will be followed by MMCs, earning R891 640 annually.

Chief whip Jabu Mabona and chairpersons of sub-committees are in the same bracket, while chairpersons of Section 79 committees will earn R832 197.

Business class flight tickets may be purchased only for Ramokgopa, Mosupyoe-Letsholo and Mabona or councillors with special needs. But this will be for flights exceeding five hours.

The increases were allowed at a rate of 5 percent for those earning more than R1 million a year, and 6 percent for office bearers earning below a million.

Councillors representing the SA Local Government Association (Salga) in formal structures will be entitled to a sitting allowance.

The life and disability insurance cover is limited to two times the total pay package of a councillor.

Special risk insurance on fixed property is R1.5m and R750 000 on vehicles.

Alternative accommodation where the residential property of a councillor is damaged or destroyed due to a riot, civil unrest, strike or public disorder is for 30 days.

Business cards, calculators, letterheads, stationery and diaries may be provided as tools of trade.

Councillors may be reimbursed for actual out-of-pocket expenses incurred during the execution of official and ceremonial duties.

Part-time councillors in the city will pocket R416 098 each year, and receive a travelling allowance of not more than 25 percent of their total yearly pay package.

They may claim official distances travelled in accordance with applicable policy; not exceeding the applicable tariffs prescribed by the Department of Transport for the use of privately owned cars. For this purpose, a logbook acceptable to the SA Revenue Service, reflecting the official and private distances travelled a month, must be kept. Where the council makes a municipal vehicle available to a councillor, the allowance will fall away.

Councillors may obtain a fixed allowance of no more than R300 a month for the use of mobile data cards.

They will also be entitled to a 15 percent of their basic salary contribution to a pension fund, and two-thirds of a medical aid membership fee, provided the scheme is not linked to alternative employment.

Economic class tickets are to be bought for all flights of five hours or less. Domestic hotel accommodation may not exceed R1 300 per person per night. The number of councillors travelling by air on official duty is limited to three at a time.

Municipalities may not incur catering expenses for internal meetings, unless approved by the council. Entertainment allowances for qualifying persons may not exceed R2 000 per financial year.

Expenses on alcoholic beverages may not be funded unless approved by the council. Financing of team-building exercises and social functions is prohibited.

Ramokgopa told the council that municipalities were being treated like Cinderellas and being dictated to, and not taken seriously.

The salaries of councillors should be paid by the national fiscus and not ratepayers, he said.

He questioned the low allocation for accommodation during travels or when damage has been caused to houses of councillors. Restoring a damaged house could take up to three years, so 30 days would not be enough and the allocation for accommodation was insufficient, he said. “The fact that these determinations came after we had already approved the mid-term budget adjustment undermines municipalities,” he said, adding that similar allowances should apply at all spheres of government.

What they earn

Mayor Kgosientso Ramokgopa: R1.17 million plus R3 485 cellphone allowance.

Speaker Morakane Mosupyoe-Letsholo: R951 083 plus R3 485 cellphone allowance

Chief whip Jabu Mabona and MMCs: R891 640

Section 79 committee chairperson: R832 197

Part-time councillors: R416 098

Special risk insurance on fixed property R1.5m and R750 000 on vehicles

Mobile data allowance: R300

Domestic hotel accommodation: R1 300 a night

Maximum entertainment allowance for qualifying persons: R2 000 per year

Alternative accommodation if home is damaged in line of duty: 30 days

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Pretoria

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