National Cabinet Representative Intervention Team at Enoch Mgijima

10/11/2022

The Muncipal Manager and CFO further making statements that they have not been assisted by the NCR in revenue collection measures which is completely untrue.

09/11/2022

MEDIA RELEASE: COMMUNICATION TO THE STAKEHOLDERS OF THE EMLM:

The NCR media statement is a communication that presents more holistic information on payroll, and electricity than a mere reaction/ response to the municipality's statement:

INTRODUCTION

Emphasise the point that the combination of the structure and job evaluation is the key to resolving both the problem of underpaid and overpaid employees since the amalgamation in 2016. This combination will also address the 4% salary increase concerns of some employees as well as the delivery of services problems such as the reliability of the electricity grid, reducing the growth of the Eskom debt and so on.

1. The AS-IS assessment that was tabled to the council and submitted to the National Treasury relates to “four 4 baskets plus one” problems, including elaboration on overinflated salaries. Further external stakeholders were briefed during and after the assessment.

2. The FRP process was delayed due to several factors amongst them the need for the reconstruction of records using digital information. The plan is under consideration by the national treasury and was developed through interactions with management.

The FRP is addressing the “four 4 baskets plus one” and will replace the 2018 version. The final FRP is now imminent for implementation by the municipality and will address the absence of both the structure and job evaluation. The rollout of the implementation of the organisational structure will produce an effective job evaluation that has been absent since the 2016 amalgamation, which resulted in the overinflated salaries of 96% of the total employees in the EMLM. The NCR is also working with the municipality to collaborate with private businesses and other stakeholders to strengthen the electricity supply infrastructure. The fit-for-purpose structure and job evaluation will ensure an effective capacitation of the department of electricity.

FACTUAL EVIDENCE OF OVERPAYMENT OF EMPLOYEES

• The AS-IS report of the diagnosis and findings of the intervention was presented to the management of EMLM as well as tabled at the Council meeting on 28 June 2022 and a resolution was made by the council for management to address matters raised.

• This is additional information to the article reported by The Rep “the voice of Komani” dated the 7th of November based on the July 2022 South African Local Government Association (SALGA) negotiated pay scales that apply to all municipalities. The municipal department of Corporate services provided the current payroll of salaries of all employees. The NCR after comparing the above two sources of data discovered that 96% of the staff at Enoch Mgijima Local Municipality are overpaid. (also see the table below).

• General workers earn up to 32%, and most semi-skilled staff are more than 150% above the national pay scale as per the 2022 South African Local Government Bargaining Council (SALGBC) for a municipality of the size of EMLM. The source of overpayment is the over-grading of jobs using the TASK job evaluation (Tuned Assessment of Skills and Knowledge). For example, a semi-skilled job such as a cashier and switchboard operator at EMLM currently earns R27 791, instead of being paid plus/minus R10 820. This accounts for an overpayment of about 157%, which is more than a double salary.

• The factual evidence at the meeting could not be provided by the management except to say they reject the statement made by the NCR about the overpayment of employees. The AS-IS report was tabled to the Council and also presented to the Ward-committees of the EMLM contains the samples of actual jobs (names removed).
Column A is the current TASK Grade; column B is the correlating NQF level; Column C is the current monthly payment as per the payroll of EMLM. Columns D-F shows what the /would be the correct corrected Grading and Pay, and Columns G & H show the impact.

Note: Even in the light of any variances based on job content (as per validated job descriptions), the significant difference between grading of a semi-skilled position requiring a National Qualifications Framework(NQF) Level 3 and that of a Professionally qualified requirement at NQF level 8 cannot be justified.

(See table in picture below)

CONCLUSION
The municipality has been short-changed by the management in the last five years since 2016 amalgamation of the three erstwhile municipalities.

In the interaction between the EMLM management with the NCR team on the 8th of November only to say they reject the statement made by the NCR that employees are overpaid to the tune of 96% of the staff establishment, the NCR agreed that they can make a media statement however they should also provide factual evidence to support their statement. The statement issued by the management to the effect that there has not been engagement is not true as outlined above.

In the municipality, the management is yet to be held accountable for the biggest cause of the financial crisis, lack of funds for the delivery of services and diverting of electricity money away from paying Eskom's debt that has accumulated to R916 million.

27/10/2022

Dr Tom and NCR Team addressing in The Annual General Meeting of the Queenstown Civic & Ratepayers’ Association

05/10/2022

Today the NCR met up with the Rate Payers Association to discuss the service delivery and matters faced by the Municipality. The RPA has availed itself to the Intervention for any assistance it may need and they have pledged their full support to the Intervention.

06/09/2022

Below is a summary of the response the NCR team received from the QUEENSTOWN CIVIC AND RATEPAYERS ASSOCIATION:

RESPONSE: NATIONAL TREASURY RECOVERY PLAN
On Behalf of QCRA, we would like to convey our support of Dr Tom in his findings and proposal for resolution thereof.
We appreciate the transparency in which the Dr Tom and National Treasury has conducted their investigations and welcome your feedback.


Electricity
The illegal connection drive needs to be done in close conjunction with SAPS/Security firms for the safety of technical staff.
The business model should be the revenue collected needs to be more than the cost paid to Eskom, the difference is then to be safely put into the electrical department’s infrastructure account for repairs/maintenance and new works.

Ratepayers and residents cannot be held accountable for the R812 million debt to ESKOM, and other means of revenue should be used to service this debt. Responsible residents have been paying for services used and mis management has led to this deficit.
Debtors to be furnished with regular accounts either via email or SMS or delivered to their addresses. If you don’t supply a copy of the account to the vendor, they will not pay what is due. A Robust billing service, that is fair and correct, should be implemented with immediate effect. Too many faults are made on statements that frustrate ratepayers to the point of apathy.

Trading tariffs
“Other Services” are operated at a loss and subsidised from Electricity and Solid Waste” The paying residents should not foot the bill for those who aren’t paying. The indigent residents get their free units which is subsidised from National Government, but the illegals should be disconnected and fined for theft. The tariffs imposed are already some of the highest in the eastern cape. Municipality to relook the other services and ensure these are self-sustaining, such as refuse and other service departments.

12/08/2022

09/08/2022

On the 8th of August 2022 there was a meeting between the Intervention team, National and Provincial Treasury, National and Provincial COGTA and National and Provincial SALGA where the main contributors of the financial crisis faced by Enoch Mgijima Local Municipality were tabled and discussed. Namely a high salary bill within the Municipality, Eskom debt, lack of revenue collection and reduction of the equitable share as a result of amalgamation to name a few. The Intervention team will be sitting in on a Council Meeting on the 11th of August 2022 and there after the dates for Ward meetings with the Intervention team will be shared for all to attend in their various wards.

02/08/2022

https://www.facebook.com/enochmgijimalm/videos/378414564363880/.

Please join the live and give your comments

29/07/2022

The National Cabibet Representative Intervention team, together with the Enoch Mgijima team will be holding a media briefing on the 2nd of August 2022 at 10:00am.

The purpose of this media briefing is for the National Cabinet Representative to highlight their role and the progress so far.

19/07/2022

The section 139(7) was gazetted to start with effect 28 April 2022. THT was appointed and introduced to the Enoch Mgijima Local Municipality Council and Executive on 13 May 2022.

The purpose of the intervention is to change the current state of Enoch Mgijima Local Municipality(poor state of service delivery and financial crisis) to a future and sustainable self-sufficient Municipality. THT sees the future state which creates a path for an environment that enables economic stimulation and growth leading to the reduction and eventual elimination of poverty and social dependence of the majority of the EMLM community.