Mpumalanga’s politicians are living rent-free in flats paid for by the taxpayer and are fighting for even more luxurious lodgings in the provincial capital, Nelspruit.
The province’s legislature has requested the government to build between 16 and 20 units in a proposed “parliamentary village” for politicians at a projected cost of R53-million.
But, the legislature management board heard this week, politicians don’t want to pay more than R350 each a month for the proposed luxury accommodation.
Four senior legislature leaders, including African National Congress chief whip Jabu Mahlangu, are already living rent-free in state flats in White River after complaining that they could not afford local accommodation.
Ordinary legislature members earn about R25 000 each a month.
Legislature secretary Linda Mwale confirmed that proposals for “better” accommodation were tabled before the management board this week, but stressed no final decision on monthly rents had been taken yet.
“Rentals of R350 were one of the proposals, but we’re still debating whether the rentals should be market-related or not. None of the other provinces demand market- related rates and we are therefore considering setting our rentals on this national benchmark,” said Mwale.
Provincial housing department spokesperson Ina Georgala confirmed that Mpumalanga’s executive council, or cabinet, approved the scheme in principle last week but said it was too early to speculate on costs.
The legislature initiative follows Mpumalanga’s defiance of national financial guidelines and its insistence on irregularly paying compensation to cabinet members for staying in their own houses.
MECs, who earn roughly R39 000 each a month, are currently compensated an additional R5 000 to R8 000 tax-free every month by the taxpayer for using their Nelspruit homes as “official residences”.
Eight of Mpumalanga’s 10 MECs are confirmed to have received compensation from the scheme, including payments of R122 000 to health MEC Sibongile Manana, R130 000 to sports MEC Siphosizwe Masango, and R70 000 to education MEC Craig Padayachee over the past year.
The scheme is in clear violation of the Ministerial Handbook, which governs benefits enjoyed by politicians. Mpumalanga’s cabinet has been repeatedly warned that the handbook allows only compensation for national ministers, but local politicians have ignored the advice of its chief financial director, the provincial treasury and national experts from President Thabo Mbeki’s office.
Provincial director general Stanley Soko continued to decline to comment on the issue this week, but has previously insisted the payments are legal and that politicians were entitled to compensation for using their private property as official residences.
Citing selected portions of the Ministerial Handbook, Soko has described media criticism of the benefits as sensationalist attempts to vilify Mpumalanga’s provincial administration. He has, however, repeatedly refused to comment on the strict conditions set in the Handbook that limit the housing subsidies to national ministers who are forced to maintain two houses to serve their offices in Pretoria and Parliament in Cape Town.
Soko and Premier Ndaweni Mahlangu’s spokesperson, Sibusiso Shube, also refused to comment on an ANC policy statement on the issue in November 2000.
The ANC statement, made in KwaZulu-Natal, confirmed the principle that politicians should pay for their own accommodation, but are entitled to either free state housing or monetary compensation if the nature of their jobs forced them to maintain more than one official residence.
Only politicians who work in a dual-capital system, such as national ministers and MECs in KwaZulu- Natal who commute between Pietermaritzburg and Ulundi, are eligible for the benefit, the party said.
Mpumalanga has just one capital, Nelspruit, that houses both the government and legislature. Mpumalanga politicians therefore do not qualify.
“Our interpretation of the regulations allows for these benefits, and I am not qualified to comment on interpretations that differ from this. If the presidency or anyone else has a different view, they will have to formally communicate with Mpuma-langa,” said Shube.
Shube was also unable to say whether Mahlangu was still repaying the taxpayer after admitting earlier this year that he owed an estimated R140 000 in outstanding rent for his luxurious, fully furnished state house in Nelspruit’s most prestigious neighbourhood.
Mahlangu had not paid rent on the Sheppard Road house since taking office in June 1999.
The government said there had been confusion about whether Mahlangu was entitled to free accommodation. Media reports on the issue proved that he was not and Mahlangu pledged to immediately begin paying a monthly rent of about R6 500, as well as repay the outstanding backlog.
It is, however, unclear whether Mahlangu declared the free accommodation as a taxable benefit with the South African Revenue Service. He may be guilty of tax avoidance if the benefit was not declared.
The monthly rental is meant to be a percentage of Mahlangu’s R598 162 annual salary package.
Mpumalanga, meanwhile, also continues to fail to fully explain renovations to Mahlangu’s house. The secluded home was specially renovated and furnished for Mahlangu at a cost of R629 000 shortly after he took office.
The renovations, which included R526 700 in interior decoration, were made without proper Tender Board approval at the time, despite the fact that former premier Mathews Phosa’s R2,5-million official residence was available for Mahlangu.
Mahlangu refused to use Phosa’s former state house, and instead ordered the renovations to the Sheppard Road property. — African Eye News Service