The Oudtshoorn Municipality. File picture: Candice Chaplin/Independent Media
Cape Town - Despite financial statements indicating a qualified audit in its annual report, the DA caucus in the Oudtshoorn Municipality awarded senior officers a 14% performance bonus.

ANC councillor Jongilizwe Tyatya said: “Last week, the DA caucus supported a recommendation for the municipal manager and department directors to receive a 14% performance bonus, while the annual report and financial statements indicates that we underspent on grants and we got a qualified audit.”

According to the auditor- general’s office: “A qualified audit means, the financial statements contain material misstatements in specific amounts, or there is insufficient evidence for us to conclude that specific amounts included in the financial statements are not materially misstated.”

The bonuses were awarded despite the fact that last month the municipality narrowly escaped being placed under administration, and the recent gazette notice about municipal cost containment regulations from the National Treasury, which warned local government against unnecessary and wasteful spending.

The measures actually come into effect next month.

Tyatya said: “When the measure came before the council, as the opposition on the council, we in the ANC, Independent Civic Organisation of SA, EFF and SA Religious Community Organisation opposed it, but the DA used their majority to force the measure through.”

According to the municipal manager’s signed performance agreement for the financial year July 1, 2018 to June 30, 2019, “the payment of the performance bonus is determined by the performance score obtained during the fourth quarter”.

The performance bonus is awarded pro rata, according to the period of agreement, based on the following scheme: 0% to 64% is rated a poor performance and receives 0% of the total package; 65% to 69% is rated average and only scores a 5% bonus; 70% to 74% is seen as a fair performance and scores 9%; 75% to 79% is rated a good performance and scores 11% of the total package; 80% to 100% is rated excellent and brings in 14% of the total package.

A week ago, Finance Minister Tito Mboweni and Co-operative Governance and Traditional Affairs Minister Nkosazana Dlamini Zuma introduced a raft of new measures that they said were aimed at ensuring that the resources of municipalities and municipal entities were used “effectively, efficiently and economically”.

These measures were a follow-up to a pledge on public spending that Mboweni made in his Budget earlier in the year.

@MwangiGithahu

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Cape Argus