The Ehlanzeni District Municipality recently approved, during a special council meeting, salary adjustments and annual increases for the Municipal Manager and general managers based on Grade 6 remuneration scales, even though Ehlanzeni is classified as a Grade 5 municipality.
This decision was taken despite the fact that there is no clear evidence that the Municipality was lawfully reclassified as Grade 6 or that the relevant administrative requirements have been complied with.
A council report acknowledges that non-compliance with the upper remuneration limits constitutes irregular expenditure and gives rise to mandatory recovery obligations.
According to the report, the decision will result in additional remuneration and backdated cellphone allowances amounting to a staggering R1,706 million – of which R1,463 million relates to the 2025/26 financial year and R243 853 to the current financial year.
The previous year’s expenditure will be covered by accumulated surpluses, while the current year’s expenditure will be funded from the employee-related cost budget of approximately R175,5 million.
Against the backdrop of audit issues and the Municipality’s dependence on grant funding, it is uncertain whether these increases can be sustainably afforded without jeopardising service delivery.
Fair and lawful remuneration is essential, but residents’ needs, infrastructure and basic services must come first.
A majority vote cannot render an irregular process lawful. Accountability, legal compliance and sustainable financial management should be top priority.
