Nehawu weighs on high performance fees that, according to Parliament & # 39; projections & # 39; are no real payments

National Education, Health and Allied Workers & # 39; Union (Nehawu) have decided Thursday to parliament that it will take the issue of the highest bonuses for top managers to the presidents, the national meeting Speaker Baleka Mbete and the National Council of Provinces ( NCOP) Chairman Thandi Modise. Employees of the coalface of the Parliament must be recognized because "there is clear money in the Parliament & # 39 ;.

On Tuesday Daily Maverick reported that the annual report 2017/18 of the Parliament showed performance bonuses for top managers ranging from R56,000 for suspended secretary of the Gengezi Mgidlana parliament (about two months in the financial year beginning of June he went on special leave and was suspended in November 2017); R38,000 for Acting Secretary of Parliament Baby Tyawa and performance bonuses between R33,000 and R31,000 for other top managers, as well as most division managers.

The performance bonuses of senior management have been included in the financial statements as at 31 March 2018 in addition to funds under the headings "base salary", "post-employment benefits" and "total" – R2.889 million for Mgidlana, R2.495 million for Tyawa and R 1,677 million for Chief Financial Officer Manenzhe Manenzhe.

The parliamentary section of the National Education, Health and Allied Workers' Union (Nehawu) took note of the report and convened the urgent meeting on Thursday. Concerns were expressed about the fact that top managers benefited from performance bonuses for the 2017/18 financial year when "ordinary employees were denied performance bonuses on claims that Parliament had no money and that the institution had not met its performance target …"

And at a certain stage of the 2017/18 financial year, it also looked like the staff would no longer receive a salary increase due to the cash crunch at the national legislator. With political intervention, a wage agreement signed in June 2017, in which employees received 7.5% and management agreed not to increase. Coincidentally, there is now a bottleneck for the trade union, which claims that the management has awarded itself an outdated salary increase. Management salary packages that have been maintained in the past three annual reports seem to support the trade union's argument.

But on Thursday morning, the spokesperson for Parliament, Moloto Mothapo, brought one public statement – also issued as a so-called "info-alarm" to the staff of the Parliament prior to the meeting in Nehawu – to express concern about "grossly wrong ", "Incorrect" and "irresponsible" reporting. This is because the performance bonus amounts reflected in the annual report of the annual report were only "projections" and had not actually been paid.

"The financial statements referred to in the 2017/18 annual report have been drawn up in terms of the South African standards of generally recognized accounting practices (GRAP), which state that revenues or expenses are recognized when earned or incurred, rather than when they are be received or paid to the beneficiary, respectively, "Mothapo said after he pointed out that"Parliament has not paid any bonuses for the 2017/18 financial year and has not done so for the past three years ".

He continues: "The annual report reflects provisions or prognoses for possible payout of bonuses depending on the outcome of the annual performance assessments.This projection does not indicate actual payments and this should be easy to understand for any vigilant reporter …

"A conclusion that the secretary of the Parliament, Mr Gengezi Mgidlana, who got suspension during a disciplinary investigation, received a bonus of R56,000, in addition to other executive managers, is a gross mistake and an unfortunate misconception of the financial part of Parliament's annual report. "

Daily Maverick understands that Nehawu at his meeting later on Thursday did not buy that explanation. Senior managers paid these bonuses and if they did not, the financial statements in the annual report are incorrect and misleading. And the arguments went further, giving senior management bonuses and employees who are in the coalface of Parliament's activities should also receive bonus recognition.

After the meeting, Nehawu, parliamentary deputy of the parliamentary section, Temba Gubula, said that the trade union would write the general director and the national treasury regarding Parliament's claim that the bonuses shown in the annual financial reports 2017/18 were "projections" were not payments.

"According to our members, including those who specialize in finance and who support committees in working with annual reports, the annual financial statements do not contain prognoses. They reflect spent money … It is a reflection of how money is spent in the financial year. "

And the official letter to the Presidents of Parliament would indicate that if bonuses were placed for senior managers, there was clearly money available, Gubula said.

"The same should happen for our members and staff. " DM


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