Mboweni Got 17% Increase, `Cooling Off' Payment After Leaving Central Bank

South Africa’s central bank awarded former Governor Tito Mboweni a 17 percent pay increase in the past fiscal year, even after he left the bank half way through the year.

Mboweni’s salary, fringe benefits and other payments amounted to 5.09 million rand ($724,000) in the year through March, the central bank said in its annual report, released in Pretoria today. He was paid 4.33 million rand in the previous fiscal year.

Mboweni declined to renew his contract as governor for a third term last year and was replaced by Gill Marcus in November. Included in Mboweni’s pay is 2.6 million rand for a “cooling-off period” from his resignation on Nov. 9 through March 31. Marcus was paid 1.7 million rand for working over that period.

The bank paid Mboweni an additional 1.9 million rand between April 1 and May 8, when his “cooling-off period” ended, the annual report said.

Among the bank’s deputy governors, Xolile Guma’s pay increased 3.8 percent to 3.05 million rand, while Renosi Mokate, who left the bank on July 31, got a 10 percent raise to 3.35 million rand, which included fringe benefits such as study aid for dependents, the central bank said. Daniel Mminele, who was appointed deputy governor in June 2009, was paid 2.3 million rand.

Limit Increases

The governor and deputy governors agreed in September 2003 to limit their pay increases to the mid-point of the 3 percent to 6 percent inflation target range. Inflation, which reached 3.7 percent in July, has stayed inside the target since February.

Average wage settlements in South Africa reached 8.2 percent in the first half of 2010, the central bank said in its Quarterly Bulletin, released in Pretoria today. Those increases probably will persist into the rest of the year with public- sector workers, including nurses and teachers, suspending a 20- day strike on Sept. 6 to consider the government’s improved offer to increase wages by 7.5 percent.

To contact the reporters on this story: Nasreen Seria in Johannesburg at nseria@bloomberg.net; Garth Theunissen in Johannesburg gtheunissen@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

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