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.

  • Fred - 2011-09-06 10:01

    Not a problem, as far as the ruling party is concerned. There is plenty of money to be milked out of the taxpayers so the gravy tain can keep gathering momentum. Anyone have any good ideas to stop this government?

      p123 - 2011-09-06 10:05

      Tough one, but how about us Taxpayers holding back all taxes and rates. Unfortunately we don't have the balls to do it, we just pay, pay and pay and the ANC just take, take and take...

      Wayne Hayes - 2011-09-06 10:24


      Gazza69 - 2011-09-06 10:33

      I am guessing the figure runs into BILLIONS.....!

      Together - 2011-09-06 10:38

      It would be nice if Cosatu could factor this into their wealth assessment statements.

      mickh - 2011-09-06 10:43

      It is impossible to stop this government when they have so many stupid voters who keep voting for them even though there is no service delivery. Their answer is then to burn things down and damage vehicles to show their unhappiness. Intelligent people would vote for someone else.

      Hangman - 2011-09-06 10:59

      I have a good idea....its called a Golden Shower! All those that fail the people need to line up.

      Lucky Strike - 2011-09-06 11:08

      Problem is that the people will by now have stolen the railway tracks and the gravy train is bound to run into trouble when it hits those sections without rails!! The rich taxpayers can only last so long and then we will all be in the same boat - or canoe without a paddle!!

      Met - 2011-09-06 11:37

      Remember that the one inside the Council who gets the package approved, takes a cut- a very lucrative business

      letsee - 2011-09-06 11:49

      Why do we need nationalization? The taxes mostly paid by the "rich" and no so "rich" are already being transferred to the previledged. The best profession in South Africa is to be fired than to complete assigments and therefore delivering services is not a good idea.

      Lee Hall - 2011-09-06 12:00

      @C_S - To feel shame one needs to have some degree of self-respect. I don't think our Mob Rulers even understand the concept of self-respect, hence their total lack of respect for others.

      Malleus - 2011-09-07 09:37


  • willieman - 2011-09-06 10:06

    The ruling party is failing the people of SA.The speaker of parly decided to scrap the Travelgate scandal.the Mp's are no longer going to repay the funds they misused.Now you have this group of managers who are basicaly looting the cofers of the state.Indeed this is ANIMAL AT WORK.

      Zizo Snr - 2011-09-06 11:23

      How much did Zille give former MEC for Education in WC as a golden handshake? Why did they force him to take a package while he had few years to run in his contract. DA and the supporters are hypocrits!!! Very bad for this nation. Stop talking rubbish about the ruling party.

      Mr. Fusion - 2011-09-06 11:32

      He was employed while still under ANC. Aren't you tired of defending the caveman? It's in your blood to be a thief

      Together - 2011-09-06 11:48

      Hi Zizo Snr - are you sure that this is happening all the time in the Cape - can it truly be compared to Nelson Mandela Bay Metro? Measure the amount of money wasted in that municipality, and then compare it to the service levels in that municiplaity = balanced viewpoint approximating the truth.

      willieman - 2011-09-06 12:36

      @Zizo Snr, i think it is you who sre talking rubbish,in the first plcae this is got nothing to do with DA supporters is about good governance. Secondly it is ignorant of you to think anyone who ""talk rubbish about the ruling party according to you" is a DA supporter.We need to criticize anc in order to build it

      The Observer - 2011-09-06 14:02

      zizo, what the hell are you talking about, give us some facts here. "Stop talking rubbish about the ruling party. ", we're are not talking rubbish about them, we are talking about the rubbish they create. so ziz give us your input on the yl saga, I love every minute of the stone thowing circus show going on. They should give each yl memeber a job in the boswell circus, no animals needed.

  • crocoros - 2011-09-06 10:07

    Why is it happening. If you apoint a Municipal Manager there are certain criteria he must meet to fullfill the job and if he is not performing according to the criteria set out then he must be fired without compensation and a golden handshake. That is how it is done in the business world, if you apply for a job and you don't deliver you are asked to leave and not paid millions because you don't know what you are doing, also if you are caught with your hand in the cookie jar, or if you are part of bribery and corruption you are instantly dismissed without pay, so why is government so happy to payout taxpayers money to incompetent municipal managers who are not performing as they should. Its a load of crap. These people are probably targeting jobs in government because as usual they get paid if the wind blows the wrong way.

      Mya - 2011-09-06 12:14

      hush money...

      zeekoevlei - 2011-09-06 12:44

      ...they have to pay them millions because they are firing them not because they are incompetent, but because they are UNWILLING to be part of a corrupt circle... as the article states ...."municipal managers saying there was pressure on them to grant tenders and resources to politicians. They also blamed corruption and political meddling"

      Jamie - 2011-09-08 09:37

      It's the cost of AA. The people who should be doing the firing aren't competent enough in their jobs to do it properly, so would be sued, so they "avoid" the problem by paying the people off instead. It's easy to spend other people's money.

  • PinkAndProud - 2011-09-06 10:08

    Golden handshakes? They don't even deserve their salaries, let alone a golden handshake.

      Kenno - 2011-09-06 10:52

      This is how it works! I will employ you, even though you dont have a clue with regard to the job. We will then give you a golden handshake, and we will spilt the money!! It is called reative employment!

      Jeanette Abdeaux - 2011-09-06 12:17

      I wholeheartedly agree with you PinkAndProud. I would say no brains, no pay !

      SakzenMa2fas - 2011-09-06 14:41

      This is what happens, You apply for the job, you get it because you are quilified. Then when it gets to the crunch and you are asked to participate in offhand dealings, they make your job as difficult as possible to work. Instead of getting a tarnished cv, you go speak to someone to release you from your job, and quietly dissappaer from the ploitical sphere. To think everything is just cut and dry a hundred percent of the time is naivity of the highest order.

  • Gavin - 2011-09-06 10:19

    It shows how clever the appointees are, they make sure thier asses land in the butter even if they don't perform.

  • IC1 - 2011-09-06 10:23

    Typical ANC, reward incompetence, jobs for buddies A$$holes

  • Jackool - 2011-09-06 10:33

    How to get the golden handshake? Know enough inside information about your boss and the company you work for in regards to all the dodgy and dubious dealings thats going on behind closed doors.

  • Brett Sacks - 2011-09-06 10:35

    So, let's get this right... Various 'pundits' including the likes of Tutu are calling for more taxes (especially on whites). Now, as much merit as there is to this due to the obvious discrepancy in our country between the haves and have nots -- perhaps if we get rid of the corruption/tenders/golden handshakes, we can take some of this money (also taxpayers!) and use that for better use. Let's not shoot ourselves in the foot here.

  • yucca.nel - 2011-09-06 10:44

    I guess one can't even read articles like this as news anymore...

  • Flarkit - 2011-09-06 10:45

    Corruption is out of hand. The ANC is steadily removing all obstacles to their thieving ways. First the Scorpions were disbanded and now the Hawks have no funds. With foreign investment dwindling to nothing, they'll raise taxes until there's no way for regular citizens to afford a decent life. People please unseat these crooks and vote in a leadership which is truly able to run a country, instead of ruthlessly raping its citizens!

  • Androgene - 2011-09-06 10:55

    Who cares? If we run out of money we'll just print some more. Or raise taxes - that one never gets old. (Like the parking bay tax they want to charge in P-town). Put on your party hats, chaps! The gravy train is rolling on.

  • Shorts1 - 2011-09-06 11:02

    This is all part & parcel of the ANCadre's " now it's your turn to bury your snout deep into the trough of self-indulgence " wealth distribution policy aimed at rewarding their key PDI [ Presently Dysfunctional Incumbents ] party members.

  • Ben Fowler - 2011-09-06 11:11

    Come on. It is black economic empowerment. If you don't deserve it you get it. It is as easy as that.

  • Freddie One - 2011-09-06 11:11

    "An ANC spokesperson said he was unaware of complaints of political interference in municipalities" How on earth does this 'spokesperson' expect to be believed? I, an ordinary taxpayer, not a member of ant political party, am aware of them. He/She should be fired for lying.

      Gina - 2011-09-06 15:15

      Freddie it was said when Zuma came into power that they would put their people in every area possible to hold on to power, but the unfortunate thing is, these people are as educated as our president, they have no idea about work, all they know is how to open a tap and then they do not close it.

  • Nkalakatha - 2011-09-06 11:15

    The Municipalities are being controlled by politicians !! That is why you hear a lot of "political appointments" being made. I for one would not like to be appointed into such a post because if you dont play according to the "master's" rules, you are simply given the boot !! Hence the so-called golden handshakes to keep the ex-official's mouth sealed !! Thats how it works folks !!!

      Together - 2011-09-06 11:49

      Why is anyone satisfied with that? Protests don't work - only votes work.

  • d2eguy - 2011-09-06 11:17

    ANC`s corruption at its best , viva fraud , viva theft , viva corruption , viva ANC .

  • Tolerant - 2011-09-06 11:24

    The strict labour laws are also to blame.

  • Ingie - 2011-09-06 11:26

    Well we all expected this stealing from their own kind to line their own pockets... vultures the lot of them, BUT THEY ALL STILL VOTE ANC...WONDER IF THEY ARE ALL COLOUR BLIND CANT SEE BEYOND ANYTHING THAT IS BLACK

  • Arno - 2011-09-06 11:26

    Be thankful we still hear about these things, when the state secrecy act goes though all we're going to hear about is how great the ANC is and how good they are doing for the communities. Complete bunch of c#nts

  • Douglas Hendry - 2011-09-06 11:30

    Uf "municipal managers are saying there was pressure on them to grant tenders and resources to politicians", why do they not air these problems while still in office? Expose the corruption, or potential corruption? Afraid of losing their jobs and perks? Or just afraid, full stop? Corruption needs to be exposed to the light, and corrupt officials and politicians jailed, penalised, financially punished, and denied any future in office or local Government.

  • Man can do - 2011-09-06 11:34

    If all the non voters get off their indifferent backsides and vote against ruling party, maybe we will experience a different type of government. Until all the apathetic armchair complainants start doing something, the status quo will remain.

  • Garry - 2011-09-06 11:40

    this is the ANC way of self enrichment, screw the services to the people. And you know waht these mangers get appointed again in another dept or municipality, screw up again and receive anothe golden handshake , and so it goes on and on. The ANC is the most corrupt and racist government in the world.

  • letsee - 2011-09-06 11:50

    The rights of those with a job at the expense of those that can't find a job. The problem with rights is that it comes at a cost for those that have no jobs.

  • Sharkie - 2011-09-06 12:21

    Except then the white rate payer gets charged far far faaaaaaar more on their electricity and water and refuse etc. Oh what am I saying, that's ok right? While you're paying - give us your land and hand over your job too.

  • Kitchengirl - 2011-09-06 12:36

    Stop complaining and use your vote, that's the only powerful tool!!!

  • Clint - 2011-09-06 12:55

    GDP Growth 1.3%. 7% is a figment of the ANC's imagination. Once the country is completely poor and has nothing to give then what?

  • Dumba1234 - 2011-09-06 13:24

    Graham Richards fired twice but still got R6m in total That is just plain greedy and selfish People should get together in their communities and organise private people to pick up rubbish etc and pay the rates to them instaead of thieves in municipalities

  • Gina - 2011-09-06 15:13

    The first thing you do, is not give anyone more than a years contract, especially with the uneducated people that are being employed just because they are of the correct colour. They cannot do the job, they do not know how to organise or delegate work. The poor people who are actully working are being underpaid and they still want to cry out that they white nation is still earning the most per month. Get the old people back to look after the most important departments in this country, otherwise ring in the chinese I am guite sure they will do a better job then the local people.

  • Gail - 2011-09-06 15:17

    I come from Vereeniging. Article last week in local paper that a company conducting an audit on purchases less than R30000, investigated all deals above R30,000 and found discrepancies of R1,800,000,000.00 (billion). Response from Municipality. 'They do no accept the report' and will conduct further investigations themselves. HALLOOOOOO! Howzat. I have asked that newspaper to assist in starting a ratepayers association that pays our rates into a trust fund until the municipality sorts themselves out. I have the feeling that I am the only concerned citizen in Vereeniging.

  • Verdade - 2011-09-06 18:13

    Bad a spade a spade - Golden handshakes for ANC cadres instead of jail sentences.

  • Mandla - 2011-09-06 23:41

    Was not aware that the DA is in the some game with the ANC.Or mybe they gave former ANC deployees a golden handshake to be off municdipality which are DA run.Carder Deployment,by the way the DA is opposed to carder deployment.

  • RokitScience - 2011-11-07 02:35

    Simple, if you can't do your job properly in government, then you are rewarded for that... That's the message I get. Change of career I reckon...

  • Dolf_Du_Toit - 2011-11-07 06:44

    Just to make sure they have stolen enough money ... they get more when they leave ...

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