Small municipality stopped from paying senior managers bonuses amidst R8.23 million in irregular expenditure and R5.06 million deficit

The John Taolo Gaetsewe District Municipality wanted to pay senior managers performance bonuses despite serious problems under their leadership.

However, this proposal was stopped by the Democratic Alliance, which partnered with other parties to reject the bonuses.

The John Taolo Gaetsewe District Municipality, formerly the Kgalagadi District Municipality, is one of the five districts of the Northern Cape province.

The seat of the authority is Kuruman. As of 2011, the majority of its 176,899 residents speak Setswana.

The region sits on rich mineral belts containing major deposits of iron ore and manganese.

Mining operations include Kumba Iron Ore’s Sishen Mine near Kathu and multiple manganese mines near Hotazel and Black Rock.

Agriculture consists primarily of livestock farming, including cattle, goats, and sheep, which is suited to arid and semi-arid landscapes.

The John Taolo Gaetsewe District Municipality and its constituent local municipalities face significant service delivery challenges.

Water access remains a critical issue, with ageing bulk water infrastructure, unmaintained borehole systems, and pump failures frequently disrupting supply.

There are also problems with deteriorating roads, sanitation and waste management services, housing, and financial governance.

However, despite these problems, the John Taolo Gaetsewe District Municipality Council wanted to reward senior managers with performance bonuses.

Koketso Paul, a councillor in the municipality, said the proposed bonuses came while the municipality’s financial and audit performance continues to deteriorate.

“The DA refused to accept any bonus. Our stance on good governance was supported by other political parties, ensuring that the proposed bonuses were rejected,” he said.

During the 2025 financial year, the municipality’s audit outcome regressed. It also incurred R8.23 million in irregular expenditure.

There were also findings relating to procurement and contract management, as well as unauthorised, irregular, fruitless, and wasteful expenditure.

“The municipality recorded a R5.06 million deficit, spending more than it generated, while more than 50% of the following year’s budget had already been spent,” he said.

“With this record, bonuses are not the answer. Consequence management is,” Paul said.