Durban - The CEO of the SA Local Government Association (Salga) is earning an annual salary of R3.8 million despite most municipalities in the country being in a distressed or dysfunctional state.
The salary came into the spotlight recently after it emerged that former Salga CEO Xolile George, who is currently the secretary of Parliament, got a significant pay hike a year into his position at Parliament.
But Parliament announced that this reviewed remuneration package “was set below (by about 26%) what he earned in his previous position as CEO of Salga”. His salary at Salga was reportedly more than R5m.
Salga confirmed this week that current CEO Sithole Mbanga earns R3.8m per annum which includes basic salary, medical aid and other benefits.
Salga is an “autonomous association of all 257 SA local governments”, which aims to “represent, promote and protect the interests of local governments and to raise the profile of local government” according to its website.
While some KwaZulu-Natal mayors agreed that the salary was commensurate with the workload of the position, uMngeni Municipality mayor Chris Pappas and former Salga CEO Makhosi Khoza said the salary should be reviewed.
Pappas insisted that the salary package warranted a review. “There are certain issues that need to be properly aligned within local government and the CEO’s salary is one such matter that needs to be addressed because it does not seem justified,” said the DA premier candidate for the 2024 elections.
Aside from the CEO’s salary, the mayor said the equitable share allocation for municipalities also warranted reviewing as some were barely getting by with their allocations from national government.
Khoza agreed that the current CEO’s salary warranted reviewing as it was not in line with the realities of the country, especially the performance of municipalities.
She said that the hefty salaries of city managers of metros and other big municipalities could be justified.
“City managers co-ordinate and oversee the performance of engineers, accountants and technicians working under them and the performance of the entire municipal structure is their responsibility,” Khoza said.
She maintained that amid calls for financial discipline, the Salga CEO’s salary was out of line. “It is not palatable for someone in the public sector to be earning so much,” she said.
Speaking on the sidelines of the Salga conference in Durban last week, Msunduzi mayor Mzimkhulu Thebolla insisted that the CEO’s salary was justified, citing a range of activities that the office was engaged in. “When was the last time that you heard of a strike by SA Municipal Workers Union across the country? It has been a long while and part of that has to do with a lot of work that the Salga CEO does on the part of municipalities to ensure such stability,” said Thebolla.
He added that local government was a key sphere and it was important for Salga to attract the best and that meant providing a salary commensurate with the job requirements.
He added that aside from the bargaining council, the Salga CEO also represented municipalities at different platforms where they needed to lobby for local government.
“Obviously the matter also needs to be discussed at a general council level with all municipalities represented, but one would say at the moment the Salga CEO deserves what he earns,” said Thebolla.
UMshwati mayor Mandla Zondi agreed that the Salga CEO’s salary package was reasonable. “When you realise the number of municipalities, not just in KZN but the country at large and the many interests they have which have to be represented in many platforms then you appreciate the massive task for the CEO,” said Zondi.
IFP KZN chairperson and Salga KZN chairperson Thami Ntuli said while he could not fully comment on the subject, it was important that the CEO be paid in line with peers at the same level.
He noted that there were many municipalities that look to Salga for assistance and this had been offered in the past.
Salga spokesperson Tebogo Mosala said the association offered market-related salaries and also considered the person’s salary at their previous employer and what the candidate is willing to accept to take on the job, and most importantly, affordability for the organisation.
She defended the organisation over the criticism of the CEO’s salary, especially with regard to reference being made to poorly performing municipalities. “The performance of municipalities is not a pre-determinant for the salary of the CEO of Salga, but rather what is expected of the person in that role in relation to Salga’s mandate. Salga has consistently achieved against its annual performance plans over the years. The performance of municipalities on the other hand is influenced by many other factors that are outside the scope of the role of Salga as an association”.
Mosala added that accounting officers in public and state-owned entities have consistently received competitive compensation. “It is imperative to recognise the value of accounting officers in the public sector and acknowledge the competitive nature of their remuneration, which aligns with their responsibilities and contributions to the nation's financial stability and growth.”