/ 30 August 1996

MPs can expect further pay hikes in 1996

A COMMISSION set up to determine what salaries and benefits public representatives should receive has employed consultants to do just that — at a cost of more than R1-million.

Sakkie Olivier, secretary of the Commission on Remuneration of Representatives, said KPMG Global Edge’s tender of R992 000 to investigate and make recommendations on salaries and allowances had been accepted.

It would cover MPs, senators, the deputy president, ministers, deputy ministers and members of provincial legislatures, premiers, MECs and office bearers as well as local government representatives and office bearers and traditional leaders. The highest tender offered was for R1,3m, he said.

Another tender of R50 000 had been awarded to Old Mutual Actuaries to investigate and make recommendations on pension funds for public representatives.

The scope of this investigation excluded traditional leaders as no decision had yet been taken on whether they should qualify for pensions, Olivier said. The highest bid in this category was for R600 000.

He said the commission decided to tender for consultants as none of its seven members were remuneration experts. The consultants were due to report back to the commission by mid-September.

The commission’s brief was extended to include traditional leaders after it was reconstituted in March this year under the chairmanship of retired Supreme Court Judge Jan Steyn. He replaced Judge Harold Levy, under whom the commission had held only four meetings by the time its term expired last December.

The lack of progress saw the Speaker of the House, Dr Frene Ginwala and Senate president Kobie Coetsee writing to President Nelson Mandela in February, asking that he speed things up. They acted on the request of party whips who were being deluged with queries from members.

The 15% salary increase recently granted to MPs and senators was not recommended by the commission but was awarded in terms of a Cabinet decision as interim relief for members who had not had increases since 1994 and still have no pension scheme.

It prompted a vehement response from teachers, nurses and policemen who have been told government cannot afford to pay them an increase .

Olivier said the commission, which has heard evidence in the form of both oral and written submissions and will be conducting further hearings, was looking for a “fair and just remuneration” for elected representatives. “If it feels salaries are too low or too high it will act,” he said. It was expected to report to President Nelson Mandela by the end of the year.

The commission’s members are UCT vice- chancellor Dr Mamphela Ramphele, Sankorp chief executive Dave Brink, Southern Life chairman Neal Chapman, Cosatu vice- president Connie September, former Nafcoc president Archie Nkonyeni and the Western Cape director of the Independent Development Trust, the Reverend Colin Jones.