Current Edition >> Archives Section >> Spot Coverage >> 16-30 September 2005
Relevant figures seem to indicate that the Motheo District Municipality finds itself in financial deep waters because of duplicating appointments of senior staff, high severance packages and exorbitant increases in salary perks, amongst others.
Since 2002, the cost of court cases against staff members for which the verdict went against the municipality, amounted to a total of some R516 000. It started off when Mr. German Ramethebane was relieved of his post as municipal manager and had eventually to be paid a severance package. Later his successor, Mr. Trevor Pitso, was dismissed from the same position due to alleged misconduct. Apart from the R900 000 that the municipality had to pay Pitso for unpaid salary during his suspension, the legal cost for his case came to almost R51 000.
The saga continued when Mr. Lebina Tsotetsi was nominated for the vacancy of municipal manager by the Municipal Council of Motheo but was subsequently vetoed by the then Executive Mayor, Ms. Nontsoko Mohapi. During the ensuing legal battle she had the position temporarily filled by Mr. Papi Kganare, but the legal cost incurred by Tsotetsi to get himself reinstalled after a lengthy suspension, ran to a total of some R425 600. However, the Motheo Municipal Council changed its mind and decided that applications should again be invited for the post. This ended in Ms. Thandi Kgosidintsi be appointed in 2005.
Meanwhile Pitso's appeal against his dismissal was upheld by the Labour Court, which ordered his reinstatement. So the District Municipality has to pay that legal cost as well as bear the cost if it is to appeal against the ruling to reinstate Pitso as municipal manager. This means that the municipality finds itself at present in the situation of employing two municipal managers!
Another parallel, related development was when the Motheo Municipal Council felt obliged to have the Executive Mayor, Nontsoko Mohapi, legally compelled to leave office on charges of misconduct also involving legal cost and severance payments and be replaced by Ms. Kedibone Tholene.
While these developments were taking place, the Motheo Council provided in its budget for 2005/2006 for salary increases of R12 986 520 to R42 215 940 - compared to the previous year, an increase of 44,43%. While this is partly due to a salary increase of 6% as prescribed by Salga, as well as the creation of 34 new posts, the major reason results from salary rises of up to 32% for senior officials. For instance, the salary of the municipal manager was increased from R850 000 to R901 850 (of whom there are now actually two).
Whilst all the financial implications of every move mentioned above are not known to the Free State Business Bulletin, it is largely significant and worrying that the financial statements of the Motheo District Municipality do indicate that in the budget for 2004/2005 an amount of R16 811 410 was taken from the reserve fund to balance the budget. In this year a whopping R26 008 520 is to be taken from the reserve fund.
Thus clearly these antics has landed the Motheo District Municipality in the financial deep end and all this for an institution operating primarily on levy funding from businesses and tasked mainly to promote local economic development (LED) and social upliftment. Although there is clear evidence that Motheo District Municipality is doing much to promote an aspect such as tourism development in its region, there is little prove of fostering other key components such as LED and SMME development.
In the aftermath of Harmony's seven-month hostile takeover bid for Gold Fields, the staggering legal and other bills that the two parties have to foot are the only remnants of one of the fiercest corporate battles fought in South Africa's mining industry. That came to a hilt on 20 May 2005, when the High Court handed down judgment that Harmony's offer has lapsed on 18 December 2004 and that the company is precluded from making any further offer for a period of 12 months.
Gold Fields has spent R316 million on defending itself against Harmony's hostile takeover bid, hiring in the process a bevy of lawyers, advocates, bankers and public relations experts to assist in the fight. For it's part, Harmony's tab for similar services will also run into tens of millions of rands. However, it is believed that the real costs should be calculated in terms of the damage that the hostile takeover bid inflicted on the share prices of the two companies, which is estimated in terms of billions of rands.
The Dept. of Zoology and Entomology of the University of the Free State (UFS) recently received two microscopes from IMP Innovation to be used for research of fish parasites in the University's permanent Okavango Delta Research Project in Botswana. As such it forms part of the Samochima Aquaculture and Research Trust (SART), a partnership between the University, the Harry Oppenheimer Research Centre at the University of Botswana, the University of Stellenbosch Department of Conservation Ecology; Tuudoro, a non-profit company of community development specialists and the Samochima Crocodile and Aquaculture Farm.
On the photo are from the left Prof. Schalk Louw (UFS Dept. of Zoology and Entomology) Prof. Jo van As (Head of Dept. of Zoology and Entomology) Dr. Ivan van Rooyen (UFS Marketing) and Ms. Christa du Preez (IMP Innovation Solutions), with seated in front Prof. Herman van Schalkwyk (Dean: Faculty of Natural and Agricultural Sciences at the UFS).
OVK landboumaatskappy met hoofkantoor te Ladybrand het drie winkels van Senwes tot onderskeidelik Dewetsdorp, Edenburg en Smithfield oorgeneem as lopende besighede en bedryf dit nou as volwaardige OVK-handelstakke. Dit bring die totale aantal OVK-takke in die Vrystaat, Noord- en Oos-Kaap op 42 te staan.
Die afgelope fiansiële jaar het OVK 'n omset van bykans R1,1 miljard gehad, met 'n nettowins van R33 miljoen na belasting.
OVK het in 1994 ontstaan deur die samesmelting van die Clocolan, Ladybrand, Ficksburg en Albert koöperasies en ook later Karoo Oranje Landboukoöperasie Bpk (KOLK) by sy bedrywighede geïnkorporeer. OVK, wat in 1999 van 'n koöperasie na 'n maatskappy omgeskakel het, besit ook 'n 34% aandeel in Cape Mohair and Wool (CMW).
The heart of the University of the Free State is back where it started 100 years ago in the main building on campus. Renovations of the main building began during the University's centenary year in 2004 and recently the offices of the top echelon of the University, including that of the Rector, moved into the customised revamped premises.
Warm light, strong wooden floors and desks, soft paint and distinct bright art features and furniture create a sense of quality, welcoming and hard work in the building. Situated at the core of the campus, it serves as the heart through which all the channels of work flow, thus generating increasing productivity.
On the photo right is Ms. Edma Pelzer, Director of Physical Resources and Special Projects at the UFS, who was part of the revamping team.
The architect was Prof. Bannie Britz.
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