The Executive Committee (EXCO) of eThekwini Municipality convened on 27 August 2024 to deliberate on and approve several critical initiatives. These decisions, which focus on urban regeneration, governance, and inclusivity, are set to have a significant impact on the City and its residents. All approved initiatives are pending final endorsement at the Council meeting scheduled for 29 August 2024.
Boost to inner-city regeneration through national partnership
In a move to revitalise Durban’s inner city, eThekwini Municipality is poised to formalise a partnership with the National Department of Public Works and Infrastructure.
The partnership will be cemented through a Memorandum of Understanding (MOU) following a report presented by Acting Chief Operations Officer George Mohlakoana. EXCO has granted eThekwini Mayor Councillor Cyril Xaba and eThekwini City Manager Musa Mbhele the authority to enter into this agreement.
The MOU aims to address challenges related to derelict buildings, enhance revenue collection, and support infrastructure development to attract private sector investment. This partnership forms part of the broader Inner-City Regeneration Programme, which seeks to restore the dignity of the central business district by tackling issues such as crime, drug-related activities, and the hijacking of state-owned buildings.
The decision to formalise the MOU follows a successful meeting between Mayor Xaba and Minister of Public Works and Infrastructure Dean Macpherson on 26 August. Both parties acknowledged the City’s progress in implementing its 15 workstreams dedicated to inner city regeneration and recognised the need for a structured approach to collaboration, which the MOU will facilitate.
To ensure the effective implementation of the initiatives outlined in the MOU, two committees will be established: a technical committee and a political committee. The technical committee, co-chaired by representatives from both the City administration and the national department, will meet monthly to oversee the progress.
The political committee, co-chaired by Mayor Xaba and Minister Macpherson, will convene every two months to review progress and make strategic decisions.
Mayor Cyril Xaba clarifies R1.6-billion expenditure amid concerns of wasteful spending
Addressing concerns about unauthorised, irregular, fruitless, and wasteful expenditure totalling R1.6-billion, eThekwini Mayor Councillor Cyril Xaba provided clarification, emphasising that the expenditure is not solely attributed to wasteful spending. He explained that a significant portion of the reported amount is linked to multi-year contracts, which are flagged each year they remain active.
Chief Financial Officer Dr Sandile Mnguni, speaking at today’s EXCO meeting, detailed that 90% of the non-compliance is technical and relates to local content requirements, while 6% of the non-compliance is due to the splitting of orders.
Dr Mnguni stressed that irregular expenditure does not necessarily indicate a lack of value for money, but rather that certain procedures were not strictly followed.
Mayor Xaba gave assurance that the contracts in question will continue to be flagged in future reports until their completion. In response to these issues, the City has taken steps to address non-compliance and is seeking guidance from National Treasury on how to regularise the expenditure effectively. The report will be referred to the Municipal Public Accounts Committee for further processing and recommendations to Council.
Inclusivity in leadership nominations
In a demonstration of the Municipality’s commitment to inclusivity, EXCO has nominated Councillor Mduduzi Nkosi of the Inkatha Freedom Party (IFP) as Chairperson of the Trading Services Committee. The nomination, proposed by Councillor Nkosenhle Madlala and seconded by Councillor Zama Sokhabase, exemplifies cross-party collaboration within Council.
However, the position of Chairperson of the Human Settlements Committee remains vacant following the refusal of the nomination by Councillor Thabani Mthethwa of the Democratic Alliance.
eThekwini Municipality approves mandate for negotiations on Council staff members’ remuneration
EXCO has also retrospectively approved mandates for two crucial negotiation processes: one concerning the salaries, allowances, and benefits of Municipal Council members, and another focused on a new salary and wage collective agreement for Municipal staff.
The first mandate involves negotiating the upper limits of remuneration for Council members for the 2023/24 and 2024/25 financial years. A report tabled at EXCO, which included a request from the South African Local Government Association (SALGA), proposed a 3% annual increase for 2023/24 and a 2.5% increase for 2024/25. Additionally, adjustments will be made to population bands based on the 2021 Census results and increases in remuneration packages and allowances will be implemented for both full-time and part-time councillors.
SALGA is advocating for equitable remuneration across all levels of government, recognising the full-time nature of councillors’ roles.
In addition to the Council members’ remuneration, EXCO confirmed its support for the City Manager Musa Mbhele to negotiate a new salary and wage collective agreement for Municipal staff. The facilitators proposal is to be effective from 1 July 2024, will span five years, concluding on 30 June 2029. The previous agreement expired on 30 June 2024, necessitating ongoing negotiations that began in July 2024.
The facilitators’ proposal includes a 4.5% salary increase starting 1 July 2024, followed by an additional 1.5% increase in March 2025. For the subsequent years, salary increases will be based on the Consumer Price Index (CPI), with adjustments ranging from CPI plus 0.75% to CPI plus 1.25%. Benefits linked to salary increases will rise accordingly, with housing allowances and medical aid increasing by 4.5%.
The proposal also addresses housing investigations for employees earning less than R22 000 who do not receive housing allowances or subsidies, with a deadline for completion set for 31 March 2025. Additionally, the issue of service plans for employees will be handled at the local level.
