ADM out to trim the fat cats

R133m set aside in bid to re­trench top earn­ers who do noth­ing, says man­ager

Daily Dispatch - - News - SIPHE MACANDA SE­NIOR RE­PORTER siphem@dis­patch.co.za

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 was re­vealed by ADM mu­nic­i­pal man­ager Than­dek­ile Mny­iba in an ex­clu­sive in­ter­view with the Daily Dis­patch.

This is part of Mny­imba’s five-year strat­egy to turn around the for­tunes of the be­lea­guered mu­nic­i­pal­ity.

Coun­cil is ex­pected 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,” he said. to con­sider the plan

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.

The em­ploy­ees would have to ap­ply for the pack­ages; how­ever man­age­ment has the pre­rog­a­tive to de­cline, Mny­imba said.

“We need to be re­spon­si­ble in our ap­proach. We can­not lose ex­per­tise, so if we see that this per­son has ex­per­tise we need, we will not ap­prove that.

“When ev­ery­thing is ap­proved by coun­cil in De­cem­ber when we come back in Jan­uary, we will start the process and a no­tice will be is­sued,” he said.

The R33m which is bud­geted for the cur­rent fi­nan­cial year will tar­get about 25% of the salary bill. The mu­nic­i­pal­ity spends its en­tire profit share from na­tional gov­ern­ment on salaries.

“Our cur­rent struc­ture is some­thing else, bloated at the top and the peo­ple who are sup­posed to be ac­tu­ally do­ing the job are not there. We do not have ar­ti­sans and we won­der why we can’t fix leak­ing pipes.

“We’ve got peo­ple in the of­fice who are ac­tu­ally sit­ting do­ing noth­ing and th­ese are top earn­ers and what they are do­ing does not add value,” Mny­imba said.

In terms of the bar­gain­ing coun­cil mu­nic­i­pal cat­e­gories, the district mu­nic­i­pal­ity is a cat­e­gory six but for some rea­son pays its em­ploy­ees as a cat­e­gory seven mu­nic­i­pal­ity. Mny­imba said the mu­nic­i­pal­ity has now con­tracted a firm to re­view their struc­ture so as to cut costs and ac­cel­er­ate pro­duc­tion.

Pic­ture: MICHAEL PINYANA

NO NON­SENSE: Amath­ole District Mu­nic­i­pal­ity mu­nic­i­pal man­ager Than­dek­ile Mny­imba is on a mis­sion to make high earn­ers ‘who are do­ing noth­ing’ re­dun­dant.

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