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24 March 2010

Independent on Saturday: Sutcliffe pay boost up to R1.7m a year

http://www.independentonsaturday.co.za/index.php?fArticleId=5398074

Sutcliffe pay boost up to R1.7m a year

March 20, 2010 Edition 1

CARVIN GOLDSTONE

DURBAN’S ratepayers are paying dearly for the “skills” of its senior municipal officials, whose total packages have been pumped up considerably.

eThekwini city manager Mike Sutcliffe’s total annual package is R1 738 000, which equates to a whopping R144 833 a month, according to the city’s latest annual report at the end of the 2008/09 financial year.

Sutcliffe’s annual basic salary of R1 253 000 is boosted with a R102 000 car allowance and a R382 000 “market” or skills allowance. His previous total package was R1 253 000.

City treasurer Krish Kumar is hot on his heels with a total package of R1 580 000, giving him R121 166 monthly and making him the second highest earner in the city. His basic remuneration is R875 000 but he receives a R280 000 car allowance and an additional R242 000 as a market allowance. On top of that Kumar receives R183 000 as a contribution to his UIF, Medical Aid and Pension Fund.

His previous package was R1 238 000.

Deputy city manager for governance Sipho Cele earns a total package of R1 454 000 which includes a R280 000 car allowance and a R121 000 market allowance. His previous package was R1 402 000 and included a R171 000 performance bonus.

The issue of market or skills allowance is proving hugely controversial in eThekwini Municipality after the finding of an internal municipal document that more than 50 senior officials received market allowances or bonuses.

Kumar has disputed the unofficial document and said the figures quoted were incorrect.

He said the Annual Report figures, where all salary details of the city manager and all the managers that report directly to him were outlined, were the correct disclosures.

The city is compelled by law to release the salary details of the city’s top earners who are Section 57 employees – municipal managers and managers directly accountable to municipal managers.

Kumar said a report has been compiled and would be submitted to the executive committee, explaining the market allowances and how they were determined.

He said the report to exco also covered how salaries were determined but said salaries for the city manager and Section 57 employees were well below the (private) market salaries.

eThekwini Mayor Obed Mlaba walked off with a cool R959 000, up from R807 000 for the previous financial year.

Deputy Mayor Logie Naidoo earned R885 000 last year (previously R745 000) and Municipal Speaker James Nxumalo fell just short of the R1 million mark, pocketing R916 000 last year (R503 000).

While the mayor and deputy mayor do not receive car allowances they have the use of council-owned vehicles for official duties and the mayor has three full-time bodyguards and the deputy mayor has two full-time bodyguards.