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Eskom pay debate: State mulls uniform salaries

Cape Town - Government is looking at standardisation of salaries of top executives working in the public sector, including the parastatals like Eskom, Minister in the Presidency Jeff Radebe said on Thursday.

During media questions at a post-cabinet meeting briefing at parliament, he was asked about opposition party suggestions that top salaries of Eskom executives should be frozen for a time. Radebe said: “The issue of salaries - not only of executives in the public sector (but also in the private sector) - is a matter of concern to many South Africans.

“There has to be a discourse about things of that nature,” said Radebe.

He said the public enterprises department is in the process of trying “to look at this matter”, including the “standardisation” of pay scales at state-owned enterprises.

DA MP and public enterprises spokesperson Natasha Michael said Eskom paid its top officials a total of R60m in the 2014 financial year - up from R57.4m the previous year.

Dames received highest salary ever paid by Eskom

Michael said that she has written to Public Enterprises Minister Lynne Brown, urging her to impose a moratorium on pay hikes for the “exorbitant” pay enjoyed by Eskom's “clearly failing” executives.

READ: Freeze Eskom executives' pay, urges DA

Of the R60m, Michael said that three top officials - the chief executive, the financial director and the operations director - earned a total of R24.4m in the 2014 financial year.

The then CEO, Brian Dames, took a pay package of R15.4m “which is the highest salary paid by the company ever”, Michael pointed out. “His 2013 salary was R8.5m." Dames has since left the state-owned power monopoly.

She suggested freezing executive pay at the current level until Eskom overcomes its supply shortage. “The ANC and its cadre deployments at our parastatals have made a few people very rich, but this has cost our country billions,” said Michael.

 - Fin24

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