JOBURG ADVOCACY GROUP (JAG)

Working for best practice governance in the City of Johannesburg P.O. Box 28557 Kensington 2101 011 614 0690

Attention: The Honourable Yunus Carrim Deputy Minister: Department of Cooperative Governance and Traditional Affairs (CoGTA) By e-mail 15 October 2011 Dear Deputy Minister, Re: Proposed Remuneration Increases for Municipal Councillors The Joburg Advocacy Group (JAG) is an independent civil society group working for best practice governance, social justice and environmental protection in the City of Joburg. We advocate on a wide range of issues in the interests of all of the citys people, and are not affiliated in any way to any political party or grouping. Proposed remuneration increases

It has recently come to JAGs attention that the South African Local Government Association (SALGA) has proposed massive increases in remuneration packages for municipal councillors (see http://www.timeslive.co.za/politics/2011/10/07/councillors-demand-huge-salary-hikes). This will add an estimated R7bn to the wage bill for South Africas 9,000 councillors. JAGs opposition to these proposals JAG is strongly opposed to these proposed increases for a number of reasons.

Municipalities around the country, and in Johannesburg in particular, are in a state of progressive collapse. Very few administrations obtained clean audit results in Y2010, and there is a widespread failure of good governance and service delivery at local government level. The City of Joburg is, in fact, on the brink of bankruptcy, having reported a R5.69 billion income deficit in the first quarter of Y2012. And, despite the best efforts of residents and organisations like JAG, the

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billing crisis continues unabated, although there is evidence to suggest gross mismanagement and even system-based fraud.

In addition, the Public Protector has said that graft and corruption at all levels of government are now so widespread that we may never be able to normalise the situation. This especially as local government in particular remains essentially unaccountable, either to the electorate or through the rule of law. Further, the poverty gap between rich and poor in South Africa is growing daily, with approximately 40% of the population living on the equivalent of $2 a day. Reports this week indicate that 8 million South Africans of working age are out of work, and that the situation is set to worsen as a double-dip recession threatens. It is also ironic that the very councillors who are now demanding such huge increases are the very ones who opposed requests for a living wage increase by the SA Union of Municipal Workers (SAMWU) earlier this year. This is political cynicism and self-enrichment of the worst kind. JAGs call on government Given this, we call on you to act swiftly on this matter and to restrict the next round of remuneration increases for councillors to the same percentage granted to SAMWU workers (8%); and to put an immediate moratorium on all further increases until there has been broad-based public consultation about councillor remuneration, the roles and responsibilities of councillors, and the methodologies available to the electorate in order to hold underperforming and corrupt councillors to account. As the Deputy Minister of CoGTA, we appeal to you to exercise demonstrable good governance with regard to this matter, and to act immediately. Yours sincerely,

Lee Cahill Founding Member

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