No R40m for 400 casuals

OR TAMBO district municipality faces a financial crisis with the revelation that more than 400 casual workers were hired at a cost of almost R49-million without a budget in place.

This is contained in a report from the office of chief financial officer Moabi Moleko to the mayoral committee.

It has not yet come before the council.

OR Tambo gave 12-month contracts to more than 400 casual workers, increased the salaries of some to R12000 a month and gave others backpay to the tune of R40000.

The initial number of casual workers was just more than 200 – but this suddenly shot up when some councillors added relatives and friends to the list.

A case of fraud has been opened. Police spokeswoman Dineo Koena confirmed the case.

In the report, it was stated that the cost would total R48 974 760 over 12 months – 291 would be paid R148438 for the year and 127 another R42000.

This is in addition to R14.4-million in backpay for employees who had been working since 2010.

But the cost might even exceed R49-million.

“Upon analysis of the documentation, it seems that the contract might go beyond 12-month period. The most critical issue is the affordability.

“The budget for all casuals for 2014-15 is R10.5-million, which leaves a shortfall of R38.5-million,” read the report.

Moleko warned that the municipality was “trading under potentially insolvent circumstances where cash resources will be depleted and will likely be brought to its knees”.

In the report it is stated that there were a lot of “familiar surnames” and clan names in the list.

They include ANC councillor Nomantombazana Dyule’s 17-year-old son, who reportedly received more than R40000.

The teen is among those who will be paid an annual salary of R148438.

ANC chief whip Jackson Sabona has also been implicated.

Dyule declined to comment yesterday.

Sabona rubbished the allegations as a political smear campaign.

“There was a local labour forum resolution saying casuals should be absorbed by the municipality. It went to council for noting and it was not discussed.

“It was agreed that the casuals should not be absorbed without an organogram in place.

“We said in principle there should be an agreement that they will be employed and the resolution be implemented in 2015.

“The municipal manager will have to say why such payments were made – the expenditure is unjustified.”

Regarding the allegations against him, Sabona said they were politically motivated.

“No councillor is able to employ anyone in the municipality – only management does.

“I would be able to understand these claims if there was someone from management who says they were forced by a certain politician to employ whoever.

“They should come up with evidence to that effect. There is an undeclared political war in ORT which manifests in many forms.

“As we go forward that will be exposed.”

OR Tambo spokesman Phendule Mbewu said the “anomalies” related to the employment of casual employees had been noted and that the municipality did not employ anyone without having a budget in place.

“The matter is getting the attention of the executive mayor through the mayoral committee.”

He said the allegations of nepotism would be dealt with by the mayoral committee. — abongilem@dispatch.co.za