Note to editors: You can download a sound clip in English from DA Dr Beyers Naudé Mayoral Candidate Cllr Eldrige Ruiters
A financially distressed Dr Beyers Naudé Local Municipality may now have to pay approximately R466,000 in performance bonuses to senior directors after the ANC, PA, EFF, and CSA voted together to overturn Council’s previous decision not to pay them.
All 10 Democratic Alliance councillors voted against the payout. Nine ANC councillors, together with one councillor each from the PA, EFF, and CSA, voted in favour.
This municipality is already struggling to meet its financial obligations and has had to participate in National Treasury’s Municipal Debt Relief programme over its Eskom debt.
Despite this, the ANC and its partners have now chosen to spend close to half a million rand that the municipality can’t afford to pay bonuses they had previously agreed not to pay in January.
In July, the DA successfully proposed that the municipality defend Council’s decision not to pay the bonuses, after the directors took the municipality to court.
This week, however, councillors received new legal advice warning that the municipality could potentially lose the case if it went to court.
The DA asked for a brief postponement so councillors could properly interrogate the new advice and obtain further legal guidance before committing the municipality to a potentially substantial payout.
The Speaker refused.
The ANC, PA, EFF, and CSA then voted to push the decision through.
The DA believes councillors should have been given adequate time to consider these developments, the conflicting legal opinions, the applicable Rules of Order, and the financial consequences before making a final decision.
The legal advice must, of course, be taken seriously. But the municipality’s financial position and the responsibility councillors carry when spending public money must also be taken seriously.
If Dr Beyers Naudé is struggling to pay its debts and fund basic services, how can approximately R466,000 in performance bonuses suddenly be justified?
The DA opposed the payout and will closely scrutinise the final resolution, the amount ultimately paid, and the process used to implement it. We will also be reviewing whether the resolution complied with the Rules of Order.
It is clear that Dr Beyers Naudé needs stable, accountable leadership that puts residents and basic services ahead of political deals and questionable spending.
The DA will continue to fight for responsible financial management, clean governance, and a municipality that works for all its residents.