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Eskom execs must repay R31m in bonuses - DA

Johannesburg - The Democratic Alliance on Friday demanded that R31m awarded to Eskom's directors in bonuses be returned to Treasury immediately.

"The money can be used to purchase generators for emergency services, such as hospitals, affected by the rolling blackouts," DA MP Natasha Michael said in a statement.

Eskom's annual financial statement showed nine members of its board of directors received the money in performance share bonuses last year.

"They neither deserve, nor can they reasonably justify, awarding themselves bonuses for good performance."

Michael said that when board members did not deliver, they deserved warnings, not bonuses.

In December, Eskom posted a profit of R12.24bn for the half-year to September 2013, but the parastatal warned that it will be somewhat eroded in the second half of the financial year.

Performance vs bonus

Eskom chairperson Zola Tsotsi at a media briefing on the state of the nation's power situation defended the performance of  top management.

He said he performance of executives is not in relation to issues they have no control over. "So executives should not be judged on that."

The SA Photovoltaic Industry Association suggested the country needed photovoltaic solar power urgently to deal with the high electricity demand.

"Load shedding is completely unacceptable," said the association's chairperson Davin Chown.

He said conditions in South Africa were ideal for photovoltaic power systems, which take energy from sunlight and convert it to electricity.

Electricity supply remains tight

Outgoing Eskom CEO Brian Dames said on Friday the electricity system would remain tight and the risk of emergency conditions developing could be expected through March and April.

He apologised to the public for the inconvenience caused by the power cuts on Thursday and said it was a painful decision to make.

"The decision was necessary to avoid a total blackout," he told reporters in Johannesburg.

He said a total blackout would have had significant consequences for the South African economy.

"We are working hard to make sure that we do not get into the power cut situation."

On Dames's exit at the end of the month, Tsotsi said the process to find a new CEO to replace Dames is already under way, but the board will take its time to make a decision.

"Even if we have a short list of candidates, the board has to take its time. It certainly is the most important decision this board has had to take," he said.


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