PLETTENBERG BAY NEWS - Bitou Councillor Samkele Mangxaba of the ANC has submitted a motion of questions to council relating to a R900 000 “sweetener” paid to former CFO Felix Lötter as part of a termination agreement after his contract as CFO was terminated.
Lötter was then appointed as manager: compliance and governance, reportedly after a salary negotiation that placed him at T-Level 22, effectively “making him the highest-earning official in the municipality, exceeding even the remuneration level of the municipal manager,” according to Mangxaba’s question.
“This situation raises serious concerns about governance, ethical compliance, remuneration equity, and possible misleading of council or the executive mayor during the appointment and salary negotiation process,” said Mangxaba.
Mangxaba asked:
- Is it legally permissible, in terms of the Municipal Systems Act, the Municipal Finance Management Act (MFMA), and applicable Salga/TASK grading structures, for an official in a small-category municipality to earn a salary higher than that of the municipal manager?
- Did the official, in any way, mislead the executive mayor during the negotiation or appointment process regarding the salary scale or the financial implications thereof?
- Has any internal or external audit been conducted to review the compliance of this appointment process and remuneration level?
Performance bonus
“Given the background and circumstances, does the municipality view this as a potential case of misrepresentation or irregular conduct amounting to self-enrichment, in contravention of the MFMA and the Municipal Staff Regulations?” asked Mangxaba.
He said Lötter, as CFO, was identified as being eligible for a 14% performance bonus of his total annual remuneration package.
Mangxaba asked what the exact rand value of the 14% performance bonus referred to in a council resolution of 31 March.
Also, was it legal for a former official to receive a performance bonus for a financial year in which his contract is terminated by mutual agreement, and a severance package has already been paid out?
Second motion of question
In a second motion of question, ANC Chief Whip Sandiso Gcabayi asked about the appointment to a senior position in Mayor Jessica Kamkam’s office, without meeting the minimum qualifications or experience requirements, as prescribed by relevant legislation and municipal policy frameworks.
He asked whether the position was advertised publicly in accordance with the Municipal Systems Act and the municipalities recruitment policy.
“What are the academic and professional qualifications of the appointed official? And what steps will be taken to review or reverse the appointment if it is found to be irregular or unlawful?”
Mayor responds
Bitou Mayor Jessica Kamkam said the motions of questions are an apparent attempt to “mislead the public” into believing that the office of the executive mayor had a role in the processes undertaken under the previous (ANC) coalition - or that those councillors had no prior knowledge of the agreements reached.
"It is mind-boggling that these councillors now seek clarity on a matter they initiated, which was never formally reported, to inform the council of the agreed labour settlement. Both councillors (Mangxaba and Gcabayi) formed part of the coalition that initiated and supported council resolutions, including the 30 April 2024 decision authorising the then acting municipal manager, Dr Ralph Links, to negotiate a settlement with the previous Chief Financial Officer (CFO), [Felix] Lötter. Cllr Mangxaba proposed that very resolution."
Kamkam said her office further noted comments regarding the manager in the mayor’s office.
“For clarity, the position was advertised publicly in October 2024, and interviews were duly conducted as part of an administrative process,” she said.
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