Golden handshakes cost SA millions

2011-09-06 09:52
Cape Town - Municipalities across South Africa are losing millions of rands due to golden handshakes and severance packages paid out to municipal managers.

According to The Times, most of the country’s municipal managers fall victim to political interference and very few stay in office. Many have been suspended or fired, bought out of their contracts or offered settlements.

The Nelson Mandela Bay Metro has not had a single municipal manager complete their contract since the municipality was created in 2000. 

Graham Richards, a former municipal manager, received two golden handshakes, worth R6m after he was fired twice.

Tshwane and Mangaung municipalities were in the same boat with municipal managers saying there was pressure on them to grant tenders and resources to politicians. They also blamed corruption and political meddling.

An ANC spokesperson said he was unaware of complaints of political interference in municipalities while the South African Local Government Association said golden handshakes were a concern.

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