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DispatchLive reports that the technically bankrupt Amathole District Municipality is preparing to “cut the fat” by getting rid of redundant top earners.
To achieve this, the cash-strapped municipality has set aside R133m, which from next year it will offer as “mutual separation packages” to top managers “who sit around doing nothing”. These are level 14 to 20 managers who earn between R700,000 to R1.6m per annum. This is part of ADM municipal manager Thandekile Mnyiba five-year strategy to turn around the fortunes of the beleaguered municipality. Council is expected to consider the plan next month. Mnyimba wants to lower the R745m per year salary bill that has severely compromised service delivery. He would not say how many top managers they were targeting. “These are the people we are targeting, the high earners who are actually not adding much value. We wanted as management to do it in one financial year but due to the financial constraints that we have, we couldn’t so we are splitting it over two years,” Mnyimba said. For the current 2018-19 financial year, the municipality has budgeted R33m and for 2019-20, it has set aside R100m for the mutual separation packages.
- Read the full original report by Siphe Macanda at DispatchLive
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