AN investigation by the Eastern Cape department of local government and traditional affairs has exposed gross financial mismanagement by payroll officials in Mhlontlo municipality amounting to millions.
The investigation was conducted after the municipal manager, Yolisa Ndima, asked the department to investigate salary discrepancies in the municipality.
The probe revealed how some officials were paid acting allowances and car allowances they did not qualify for while another employee received a car allowance even though she did not have a driver’s licence.
The municipal manager at the time, Monde Sondaba, did not approve the allowances – the then director of corporate services, now municipal manager at Amahlathi municipality, Balisa Socikwa, did.
The team discovered that:
l The payment of allowances was not properly administered and paid without approval of the municipal manager;
l The municipality has an item called “other earnings” where employees are paid salaries greater than their basic salaries;
l The municipality’s payroll officer Mkhululi Nkonzombi benefits from a car allowance and has an unlimited acting allowance, whereas there is no indication of who he is acting for. The official gets a standby allowance of R1500 every month , says the report;
l More than five employees are paid fixed standby allowances and acting allowances, authorised by the director of corporate services;
l About 80% of employment letters and contracts were signed or approved by the director of corporate services instead of the municipal manager;
l Nkonzombini arranged payment of R148841.44 to an employee in September 2011 without the municipal manager’s approval;
l An employee who acted as a chief financial officer in September 2011 was paid more than R25000 for that month without a document stating the acting period. He was seconded to an acting position two months later;
l Employees who are on the same salary level earn different salaries. Some employees with more than 15 years experience earn the same salary as one employed two years ago;
l One employee is paid R100000 more than his colleague hired for the same job on the same day;
l The municipal manager’s salary is on the same level as those of the directors; and
l In February last year she was paid a package of R938000 but the following month it went down to R891000 without her knowledge.
The “conduct of unprocedural negotiation of salaries by heads of departments without the knowledge of the municipal manager to benefit employees is an irregularity, ” said the report.
It recommended the term “other earnings” be erased from the payroll records as it was “ an entry to drain municipal funds and enrich the chosen few”.
The team recommended any unjustified enrichment through the irregular salary negotiations be recovered from the employees in question from the date of receipt.
It also recommended the director of corporate services for the period between 2007 and 2009 be charged in his official capacity for misrepresenting the municipality and authorising payment and staff movement.
The payroll officer should take full responsibility for the salary discrepancies and be charged with misconduct as he failed to query the discrepancies or bring them to the municipal manager’s attention, the report said.
Attempts to get comment from the municipal manager were unsuccessful as her phone was off and acting mayor Mbulelo Jara could not be reached for comment. —
Probe exposes payroll mayhem in Mhlontlo
The investigation was conducted after the municipal manager, Yolisa Ndima, asked the department to investigate salary discrepancies in the municipality.
The probe revealed how some officials were paid acting allowances and car allowances they did not qualify for while another employee received a car allowance even though she did not have a driver’s licence.
The municipal manager at the time, Monde Sondaba, did not approve the allowances – the then director of corporate services, now municipal manager at Amahlathi municipality, Balisa Socikwa, did.
The team discovered that:
l The payment of allowances was not properly administered and paid without approval of the municipal manager;
l The municipality has an item called “other earnings” where employees are paid salaries greater than their basic salaries;
l The municipality’s payroll officer Mkhululi Nkonzombi benefits from a car allowance and has an unlimited acting allowance, whereas there is no indication of who he is acting for. The official gets a standby allowance of R1500 every month , says the report;
l More than five employees are paid fixed standby allowances and acting allowances, authorised by the director of corporate services;
l About 80% of employment letters and contracts were signed or approved by the director of corporate services instead of the municipal manager;
l Nkonzombini arranged payment of R148841.44 to an employee in September 2011 without the municipal manager’s approval;
l An employee who acted as a chief financial officer in September 2011 was paid more than R25000 for that month without a document stating the acting period. He was seconded to an acting position two months later;
l Employees who are on the same salary level earn different salaries. Some employees with more than 15 years experience earn the same salary as one employed two years ago;
l One employee is paid R100000 more than his colleague hired for the same job on the same day;
l The municipal manager’s salary is on the same level as those of the directors; and
l In February last year she was paid a package of R938000 but the following month it went down to R891000 without her knowledge.
The “conduct of unprocedural negotiation of salaries by heads of departments without the knowledge of the municipal manager to benefit employees is an irregularity, ” said the report.
It recommended the term “other earnings” be erased from the payroll records as it was “ an entry to drain municipal funds and enrich the chosen few”.
The team recommended any unjustified enrichment through the irregular salary negotiations be recovered from the employees in question from the date of receipt.
It also recommended the director of corporate services for the period between 2007 and 2009 be charged in his official capacity for misrepresenting the municipality and authorising payment and staff movement.
The payroll officer should take full responsibility for the salary discrepancies and be charged with misconduct as he failed to query the discrepancies or bring them to the municipal manager’s attention, the report said.
Attempts to get comment from the municipal manager were unsuccessful as her phone was off and acting mayor Mbulelo Jara could not be reached for comment. —
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