The Ugu District Municipality's decision to terminate the employment of municipal manager Dhanpalan Naidoo has been slammed by opposition parties which did not agree with how the matter was handled.

According to The Mercury, the municipality announced at the weekend that it had concluded disciplinary proceedings against Naidoo, who had been on special leave following an investigation by the Department of Co-operative Governance & Traditional Affairs.

The investigation report had raised several allegations against Naidoo, including that he had funnelled municipal contracts to relatives.

Naidoo denied the allegations.

The municipality said it had reached an amicable settlement with Naidoo in terms of which he would receive the equivalent of six months’ salary and he would leave the municipality immediately.

But opposition parties said the payment equated to a 'golden handshake' that only served to drain resources from the municipality, which was struggling to deliver basic services.

Naidoo, they argued, had been facing a disciplinary process and should have left after the finalisation of that process or resigned of his own volition without being enticed with payments.

The municipality said the settlement with Naidoo would allow for more stability in the council.

'The municipality will continue to institute consequence management proceedings for members of staff implicated in the Section 106 investigation report.'

IFP member Sfundo Ngwane said it was concerning that Naidoo was leaving while the allegations against him were yet to be finalised.

DA Ugu caucus leader Leonard Ngcobo said: 'There is no authority for the mayor to engage Naidoo on his exit; as far as we know, the disciplinary hearing was going ahead and the evidence leader and the presiding officer had been appointed.'

Municipal spokesperson France Zama said there was nothing sinister about 'parties in a dispute of any nature to reach a settlement'.

Full report in The Mercury