MEDIA STATEMENT: CLARIFICATION ON THE REVIEW OF THE REMUNERATION PACKAGE OF THE ACCOUNTING OFFICER OF PARLIAMENT

Parliament wishes to address concerns regarding the decision by the Presiding Officers of Parliament to review the remuneration package of Mr. Xolile George, the Secretary to Parliament.

The longstanding custom of evaluating the compensation package for the Accounting Officer has remained consistent over time. This careful review process aims to maintain the package’s competitiveness, equity, alignment with industry norms, and reflection of the role’s demands. This practice serves as a crucial strategy for Parliament to both attract and retain highly skilled individuals and ensure organizational stability.

The decision to review Mr. George’s compensation package in the previous financial year was not taken lightly and every step taken in this review was characterized by diligence and careful consideration, aligning with our core mission of upholding the highest standards of governance and accountability.

The decision was based on the recommendations of an impartial expert assessment conducted by a sust
ainable business and remuneration consultancy firm. This thorough review was initiated to ensure that the decision was unbiased, aligned with industry best practices, and free from any subjective interests. The involvement of an independent expert firm was essential to ensure transparency, credibility, and adherence to objective standards in this crucial decision-making process.

Concerning the criticism that the Presiding Officers did not consult with parliamentary parties regarding this decision, it should be noted that the Presiding Officers have extensively consulted with parties during the recruitment process of the Accounting Officer, including the selection of the successful candidate, despite there being no legal obligation on their part to do so. The decision to review the remuneration package differs significantly from such recruitment processes. It is not practical for the Presiding Officers to consult parties on their day-to-day oversight over the Accounting Officer.

In endorsing the recommendati
on of the experts regarding this review, the Presiding Officers were also mindful of the prevailing socio-economic conditions in the country. Hence, the reviewed remuneration package for Mr. George was set below (by approximately 26 percent) what he earned in his previous position as CEO of Salga. Contrary to some narratives that the package makes Mr. George the highest-earning public servant, his package falls below the earnings of most executives in the public service, particularly in local government, such as municipal managers, and other heads of statutory bodies who, like the Secretary to Parliament, are appointed through a resolution of Parliament.

Not only are Presiding Officers sensitive to the prevailing socio-economic challenges faced by the majority of South Africans; they also recognize their responsibility to safeguard the interests, hopes and aspirations of the public, which this Parliament represents, by ensuring that constitutional institutions are led by competent and qualified experts. This
underscores the importance of not only investing in talent but also retaining it to strike a balance that serves both the needs of the people and the long-term stability and effectiveness of our parliamentary system, thereby fulfilling our collective duty to South Africa and its citizens.

It is important to emphasize that, as part of general principles, the Accounting Officer’s remuneration, along with that of all staff, is determined by a combination of standardized deductions, policy-driven adjustments, and cost-of-living considerations. These practices aim to ensure fairness, competitiveness, and the well-being of our employees.

The salary of the Accounting Officer, as published in the 2022/2023 annual report of Parliament, is public information, readily accessible to anyone interested. There should be no perception of secrecy surrounding this matter. The review was conducted openly, in line with established procedures, and the resulting decisions were made with the utmost accountability and adherence to
parliamentary standards. Transparency is fundamental to our commitment to fair and responsible governance, and we remain steadfast in upholding these principles in all our actions and decisions.

The decision to review Mr. Xolile George’s remuneration package was thorough, objective, and in line with longstanding practices. We remain committed to transparency and fairness in all our actions and decisions related to the well-being of our employees, including the Accounting Officer of Parliament.

Source: Parliament of South Africa

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