ONLINE PUBLICATION’S CLAIM THAT PARLIAMENT PAID BONUSES TO MANAGEMENT GROSSLY ERRONEOUS

Parliament– Parliament has noted with concern the incorrect publication of claims by the Daily Maverick that Parliament has paid performance bonuses to its Executive Managers in the 2017/18 financial year.
Parliament has not paid anyone bonuses for the 2017/18 financial year and has also not done so for the past three years.
The financial statements referred to in the 2017/18 Annual Report, are prepared in terms of the South African Standards of Generally Recognised Accounting Practice (GRAP), which provides that revenue or expenses are recognised when earned or incurred, instead of when received or paid to the beneficiary respectively. The annual report reflects provisions, or projections, made for possible payment of bonuses subject to the outcomes of the annual performance assessments. This projection does not denote actual payments and this should be easy to comprehend by any vigilant reporter.
It should be noted that the R15.4 million budget projection declared in the 2017/18 Annual Report caters for all staff of Parliament. The reason for only disclosing the budget provision for Executive Management is in line with the GRAP prescripts that the remuneration of key management, inclusive of performance bonuses, should be disclosed. For this reason, the budget projections made for the rest of staff members’ performance bonuses is not tabulated in the Annual Report, as done in respect of senior management.
A conclusion that Secretary to Parliament Mr Gengezi Mgidlana, who has been on suspension while undergoing a disciplinary enquiry, was paid R56 000 bonus, alongside other Executive Managers, is grossly erroneous and an unfortunate misapprehension of the financial section of Parliament’s Annual Report.
We trust that the publication in question will apply the necessary care and vigilance in its future reading of performance reports to avert such irresponsible reporting.

Source: Parliament of the Republic of South Africa

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