- Herman Mashaba plans to hire all the cleaning and security staff directly and end outsourcing
- Companies are being paid a fortune while the staff receive a pittance
- Mashaba says that the ANC cannot stop him and he has done nothing wrong, he even referred himself to the ethics committee to clear his name
Johannesburg Mayor Herman Mashaba has said that only well-connected people made a fortune by outsourcing security and cleaning staff.
Mahasabha plans to end this by insourcing the staff from Johannesburg companies and that the ANC cannot stop him.
He says they have tried by accusing him of using Johannesburg municipality to do business with his wife's company.
In return, Mashaba referred himself to the ethics committee for investigation.
“I have subjected myself to the ethics committee of the City of Johannesburg and I also wrote a letter to the speaker of council, Vasco da Gama‚ requesting that the allegations made by the Sowetan newspaper that I used my wife’s (Connie Mashaba) company, Lephatsi Financial Services, to do business with the city, be investigated,” Mashaba said.
Once all the security guards, approximately 4000, were insourced he would focus on the cleaning staff.
The mayor came under fire when Mashaba was accused of doing dodgy deals with his wife's company. What he did is asked an old friend, Akhter Alli Deshmukh, who was the financial director at his wife’s company to come in and help with insourcing in his personal capacity for free.
Briefly.co.za learned that he did this after his own team gave him the runaround for several months. They had claimed that insourcing would cost the municipality more than outsourcing according to the citizen.co.za.
“I did not believe this nonsense. I was fed up and I am also not stupid to see that we are paying profit-bearing contractors R14 500 per security guard while they only pay the security guards R4 100 without any benefits or pension. That is utter rubbish,” Mashaba said.
Mashaba enlisted the help of a number of people to launch a programme to insource labour instead of hiring outside companies. This means that the municipality employs the person directly. The people he got into help posed no conflict of interest because none of them had any contracts with the city.
The new plan would result in staff being paid 50% more and receive a pension and medical aid benefits.
Mashaba was unhappy that only a few people were making a fortune off the city while the staff were paid very little. There are 90 contracts with companies tasked with provided security guard worth a total of R640 million.
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