R1.706 million in additional remuneration and backdated cellphone allowances for officials in a small South African municipality

The Ehlanzeni District Municipality has approved salary adjustments and annual increases during a special council meeting.

These increases will benefit the municipal manager and general managers based on Grade 6 remuneration scales, even though Ehlanzeni is a Grade 5 municipality.

The Ehlanzeni District Municipality is one of the three districts in Mpumalanga Province and is located in the North-Eastern part of the province.

It spans the lowveld region up to the Drakensberg Escarpment and encompasses the southern sector of the Kruger National Park.

Ehlanzeni comprises four local municipalities, including Bushbuckridge, City of Mbombela, Nkomazi, and Thaba Chweu.

Its administrative seat is Mbombela, formerly known as Nelspruit, which also serves as the capital city of Mpumalanga Province.

Monique Bornman, a Freedom Front Plus councillor in Ehlanzeni District Municipality, raised concerns about the increases which were approved.

She said this decision was made despite the lack of evidence that the Municipality had been lawfully reclassified as Grade 6.

“There was also no indication that the relevant administrative requirements had been complied with,” Bornman said.

A council report acknowledges that non-compliance with the upper remuneration limits constitutes irregular expenditure and gives rise to mandatory recovery obligations.

“According to the report, the decision will result in additional remuneration and backdated cellphone allowances amounting to R1.706 million,” she said.

“R1.463 million relates to the 2025/26 financial year and R243,853 to the current financial year.”

She explained that the previous year’s expenditure will be covered by accumulated surpluses.

The current year’s expenditure will be funded from the employee-related cost budget of approximately R175.5 million.

Bornman said these increases occurred amid audit issues and the Municipality’s dependence on grant funding.

“It is uncertain whether these increases can be sustainably afforded without jeopardising service delivery,” she said.

“Fair and lawful remuneration is essential, but residents’ needs, infrastructure and basic services must come first.”