R4.4 million Golden Handshake – Is It Justifiable?

Anthony Benadie MPL

Spokesperson – Finance, Economic Development and Tourism

The DA would like to express our sincere disgust at the R4.4 million pay-out made to controversial MEGA CEO, Bocye Mkhize.

So as to analyse the effect that Bocye Mkhize has had on Mega and the economy of the province, one must compare statistics from the 2nd quarter of 2013 with those of the 2nd quarter of 2014.

Since Boyce Mkhize has been CEO the strict definition of unemployment in the province has increased from 29% to 29.5% and the expanded definition has increased from 41,8% to 42.2%.   There are now a staggering 19 000 more discouraged workers in the province totalling a staggering 226 000.

In terms of industry performance, since the 2nd quarter of 2013 the Agriculture utilities and trade industries have shed jobs to the equivalent of 32 000, 1000 and 10 000 respectively.

With regards to MEGA’s own performance a dashboard report by the Auditor General, titled, “Drivers of internal control to achieve clean administration”, indicates clearly a total failure to address pertinent issues that have plagued the entity for the previous financial years. This dashboard report reflects the 2013/14 financial year.

According to the 1st quarterly report of the 2014/15 financial year, the entity has only managed to achieve 52% of its targets, yet they used their full quarterly budget.  The programmes that raise the red flag are Programme 2: Finance, Programme 3: Corporate Services and Programme 8: Business Development which achieved 57%, 44% and 0% of their targets respectively.

Under the management of Mkhize we have seen the removal of Bulk Water Infrastructure from MEGA. There has been little to no movement in the development of the fresh produce market , only a draft Agri-hub model has been developed and the concept document for the Fresh Produce Market is still underway.

This paints a bleak picture of MEGA’s influence on the provincial economy and looking at this performance, the R4.4 million is not justified.  This is fast becoming a tendency whereby the ANC appoints the wrong cadres as CEO’s, signs lengthy contracts with them and then when they mess up, the taxpayer must foot the bill for golden handshakes and “acting replacements”.

The DA has a strong viewpoint that pay-outs must be performance based.  We will write to the Auditor General asking for a full investigation into the matter.