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Minister unveils Eskom chiefs' pay

Aug 15 2011 16:03
Sapa
Cape Town - Eskom CEO Brian Dames and financial director Paul O'Flaherty earned over R10m between them in 2010/11, Public Enterprises Minister Malusi Gigaba said on Monday.

In written reply to a parliamentary question by the Democratic Alliance, he said Dames earned a salary of R3.399m, a short-term bonus of R1.309m, a long-term bonus of R821 000, and "other payments" of R212 000 for a total cost to company of R5.741m.

O'Flaherty earned a salary of R3.512m and a short-term bonus of R1.407m for a total cost to company of R4.919m, he said.

In a statement later, DA spokesperson Pieter van Dalen said the payments were made despite Eskom not being able to guarantee it would have enough electricity-generating capacity through 2016 and ordinary South Africans continued to struggle with significant increases in electricity costs.

This follows a report earlier on Monday about the significant bonuses paid out to Transnet's top management during the 2010/2011 financial year.

The report indicated that Transnet's top management received R63.6m in bonuses on top of their already significant R49.7m salary packages, he said.

"It is in this light that the DA will be delivering a submission to the Presidential State-Owned Enterprises (SOE) Review Committee."

The problems at SOEs were manifold and complex but one of the most basic structural problems remained the clear lack of accountability, feedback, and oversight.

Those SOEs that continued to perform below par should not be allowed to pay out bonuses to executives.

Even more importantly, when executives failed to perform or when they acted inappropriately, action needed to be taken to resolve the situation, he said.

Parastatals such as Eskom and Transnet were of vital strategic importance in the economy and their executives could not be allowed to continually deliver mediocre outcomes while they received massive "performance" bonuses.

The payout of bonuses should be clearly linked to improved outcomes at these parastatals, such as significant increases in transportation volumes at Transnet or an improvement in the electricity supply situation at Eskom.
transnet  |  eskom  |  malusi gigaba  |  parastatals

 
 
 

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