During legal proceedings between Executive Mayor Babalwa Lobishe and former GOOD regional leader Siyanda Mayana, in which the Gqeberha high court granted an urgent interdict preventing former GOOD regional leader Siyanda Mayana from posting defamatory statements on social media about the Nelson Mandela Bay mayor, Lobishe also declared; “I can confirm that I lawfully conduct a small business as a form of income generation, including the sale of retail products such as hair.”
Editor: The Mayor does have a number of different hair do’s that she uses throughout the year. See: One Reason Why Being a Female Executive Mayor SUCKS
Now, most people are under the impression that Mayors and Mayco members may not conduct their own businesses whilst serving the city in a full time position.
The situation is not quite that clear cut, though:
In South Africa, the short answer to that question is yes, but with strict legal conditions and mandatory disclosures. Mayors (both Executive Mayors and local Mayors) are governed primarily by the Code of Conduct for Councillors, which is found in Schedule 7 of the Municipal Structures Amendment Act (Act 3 of 2021). Most people point to this section: “A councillor who is a full-time councillor may not undertake any other paid work except with the consent of a municipal council which consent shall not unreasonably be withheld.”
I would add a caveat to that statement requiring the council to make publicly available the details pertaining to the consent given to each councillor. In that way the public can see which councillors concentrate ‘full time’ on their council work and which councillors serve a different master in addition to council.
The “Full-Time” Constraint
Most Mayors in South Africa are classified as Full-Time Councillors. Under the law (Item 8 of the Code of Conduct):
A full-time councillor may not undertake any other paid work unless they have received the written consent of the Municipal Council.
The Council cannot “unreasonably withhold” this consent, but it must ensure the private work does not interfere with the Mayor’s official duties.
Strict Prohibition on Municipal Contracts
There is a “hard line” regarding where that business can operate. A Mayor (and their spouse or business partners) is strictly prohibited from:
Being a party to a contract for goods or services with the municipality they serve.
Using their position or confidential information for private gain.
Obtaining a financial interest in any business of the municipality.
Mandatory Transparency (Declaration of Interests)
Within 60 days of being elected or appointed, a Mayor must declare their financial interests in writing to the Municipal Manager.
This includes:
- Directorships and partnerships.
- Shares in any company.
- Property ownership and memberships in Close Corporations (CCs).
- Any employment or remuneration outside the council.
Summary of the “Mayoral Rules”
- Private Business: Allowed only with Council Consent.
- Directorships: Must be declared in writing within 60 days.
- Municipal Tenders: Strictly Prohibited for the Mayor and their family.
- Gifts: Must be declared if they exceed a prescribed value (usually R1,000).
