139% bonus increase approved for WESGRO CEO, but MEC Maynier says he was “not consulted” – R10 million contract for one state employee needs to be set aside says Brett Herron
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Brett Herron, Member of the Western Cape Parliament and Secretary-General for GOOD
Statement delivered to the Western Cape Provincial Legislature on 16 July 2020
Weeks before this parliament approved its current budget, the WESGRO board and WESGRO CEO, Tim Harris, concluded a new contract of employment that provided for a whopping salary increase for Harris.
That salary increase was subsequently amended – but it still provides for a 43% increase in the CEO’s cost of employment package.
Harris’s total package went from R2 172 000 to R3 119 000 – an increase of R947 000 including the performance bonus.
The CEO’s new contract provide:
A salary increase of almost half a million Rand in this financial year, plus the promise of 3% above inflation increases for the next two years;
A 139% increase in the CEO’s bonus to more than half a million Rand; and
The bonus of R519 950 budgeted for this year will rise to R650 000 next year and to almost R800 000 in 2022.
On 3rd April 2020 Minister Maynier responded to a number of questions I had regarding the re-appointment of Harris as the CEO of WESGRO.
Section 10 of the Wesgro Act provides for the appointment of a CEO “in consultation with the Minister and the Executive Mayor and following a public advertising process”.
Minister Maynier said that he was not consulted as required by the Act. Maynier did however, increase WESGRO’s allocation by more than one third in March.
Minister Maynier also claimed to believe “firmly in the need for fiscal prudence in the current economic climate” and that he was taking the steps to “investigate”.
From my calculations, we are committing R10 million in salary and bonuses to the CEO for the next 3 years work and this funding was provided for in the Minister’s budget.
At a time when our country and the world is in a massive and growing recession, excessive state-funded salaries are immoral.
Has the Minister concluded his investigation and what was the outcome?
If the Minister was not consulted then the appointment was ultra vires. I call on the Minister to take the steps to set the contract aside and to conclude a new contract that is more obviously in line with his belief in fiscal prudence.
Ends