Fin24

Pay rises for parastatal execs suspended

2012-03-14 08:38

Johannesburg - Public Enterprises Minister Malusi Gigaba has suspended pay increases for CEOs and board members of parastatals until a remuneration policy has been put in place, according to The Times newspaper on Wednesday.

"Remuneration generally of executives is quite high and it doesn't contribute to bridging the inequality gaps between the highest paid and the lowest paid," Gigaba told parliament's standing committee on public accounts.

Gigaba reportedly took issue with the R10m paid to Transnet Freight Rail CEO Siyabonga Gama as incentives and bonuses while he was suspended.

Gama was suspended in September 2009 and fired in June 2010. He was reinstated in February last year.

In the light of the Gama issue, Gigaba said the issue of incentives paid to executives of state-owned enterprises should be reconsidered.

"We have to find a formula that allows us to be able to explain with a great degree of comfort the incentives that people get, which must be linked with performance."

According to The Times, Gigaba said state-owned entities were battling to compete with the private sector on salaries, making it difficult for them to attract the best brains.

"The private sector keeps pushing up salaries and puts pressure on state-owned companies," Gigaba said.

A presidential commission has been set up to review the remuneration of executives at state-owned companies.

 

Comments
  • appietrader - 2012-03-14 09:10

    All plublic enterprised are failed entities full of corruption. If the CEO an board members can't run these businesses why compare them with private sector where the businesses is healthy. Start getting RID of these cadres and open to PROFESSIONAL people of all colours. Until then these entities will remains a burden on the taxpayer.

      Stormkaap - 2012-03-14 09:19

      Really! No corruption in the private sector really! Ask Rael Levitt and auction alliance of the recent ones

      Peter - 2012-03-14 09:20

      Exactly what you said appietrader. And the new policy will read something like this ... "One for me, one for my comrade. Another one for me, one for my brada. Another one for me, one for my sista. Another one for me, one for my Mada. Another one for me, ........."

      phathuchicos - 2012-03-14 09:49

      what do you mean people of colour...transnet was failing with maria ramos, SAA made a joke when it hired the american guy, khaya and theunis. Eskom with Davis a laughing stock even those led by black people are also same. Perhaps you are referig green or purple people right...the point is governments all over the world don't know how to run businesses without tax money as a backup leading to incompetetive behaviors...

      Mzwandile - 2012-03-14 09:51

      @appietrade - They are already open to all professionals of all colour or you meant a specific colour (job reservation)

      appietrader - 2012-03-14 12:59

      @Mzwandile, I mean proffesionals off any colour. There are highly trained and well respected call it black professionals today, but, alas this government is hell bent on giving top jobs to ANC cadres that does'nt understand business and are only interested in enriching themselves at the expence of the taxpayer. Cleared up, easly.

  • Stormkaap - 2012-03-14 09:17

    Now we talking!

      appietrader - 2012-03-14 09:32

      Read again, public enterprises are FAILED & VROT with corruption!! Of course there are corruption in the private sector, but caught they suffer and LOOSE eveything. Unlike in the public sector they MAY get fired but keep the spoils of their theft?????

      Stormkaap - 2012-03-14 10:46

      Are u telling the public enterprises were financially viable,all of them prior to 1994...me knows not. The rail service had already failed then(they had one manager for every 4 employees!!! SAA was leaking then already..so please

      appietrader - 2012-03-14 12:55

      With sanctions and all they were ina better shape prior '94. About 1 manager for every 4 employees, you obvious know more than the okes that worked there before '94??????? SAA was in good shape in 1994, with experimenting with ANC pals after the then management left, is what you got today. Maybe you can shed more light on this????

  • Michaele - 2012-03-14 09:23

    I want a job like this!

      eben.ferreira1 - 2012-03-14 09:42

      Me too. Ill do a better job with my hands tied behind my back and my eyes shut

  • Erich - 2012-03-14 09:26

    This kind of action is long overdue and it baffles me how the present government took so many years (15+)to realise that many CEOs of parastatals are not only incompetent and corrupt but are enriching themselves without rendering a quid pro quo. It is not only the salaries but also other perks (especially bonusses) that should be strictly controlled and should not be left in the hands of the CEO and the board. It is just sorry that this principle does not apply to Ministers and their deputies.

      Rob - 2012-03-14 14:43

      On the other hand Gigaba's comment leaves a lot to the imagination. Maybe something of window dressing or smoke screen, but that is conjecture so let's wait and see who is affected, by how much and for how long.....That is if the information isn't protected by then!

  • eben.ferreira1 - 2012-03-14 09:33

    Minister Gigaba, if you are under the misconception that it is the best money that drawws the best brains, then I have newes for you. It simply is not true. If it was true, then could you please explain how come that, given the high salaries paid to State Enterprice Executives, they all seem to be failing. Pay a decent salary but recruit the right people, not Political appointees

  • phathuchicos - 2012-03-14 09:45

    Good move...time to make entities like SAA, Denel, Eskom, SABC and Sentec pride of the nation not burden of the nation...

  • ludlowdj - 2012-03-14 09:45

    No government official of manager status or above, including the president, MP etc should be entitled to any further increases or bonuses until they actually earn them. The ANC has spent 18 years paying out tax and rate payer funds to people who do not meet any criteria for any extra's including Bra Zuma. It is time for the ANC to take their proper place as servants to the population and to accept that they will only be rewarded for success, not failure and not a step in the right direction, but proper measurable success.

      Kas - 2012-03-15 07:25

      It is time for the ANC to take their proper place as servants to the population and to accept that they will only be rewarded for success, not failure and not a step in the right direction, but proper measurable success. So true, this absolutely sums it up perfectly - Any government is a SERVANT of the population

  • Gcwabe.KaMavovo - 2012-03-14 09:46

    This guy is making all the right noises.

      appietrader - 2012-03-14 13:04

      Don't think right noises will cut it, needs proper clean up and replace these cadres with properly trained professionals and much less government interference, then maybe????

  • Jo - 2012-03-14 09:59

    This is simular to the E-toll system billions of tax payers money flows to these incompetent organisations. It will not stop until we have transparancy and a say.

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