DA challenges Eskom Execs to reject R18.3 million bonus 

22 July 2016

The DA today challenges Eskom bosses to do the right thing and reject R18.3 million in short and long term performance bonuses thereby doing their part to mitigate South Africans having to foot the bill for the 9.4% electricity tariff hike. 

This all the while Eskom CEO, Brian Molefe, announced that the SOE will not be proceeding with signing-on of Independent Power Producers (IPP) to the grid. This decision will have far-reaching, negative ramifications for the stability of our energy supply and inevitably lead to blackouts which will undermine investment. Ultimately the economy and job creation will be the casualty if Molefe persists with his announcement. 

For this alone, Molefe does not deserve a bonus.

It also cannot be that Eskom Executives can receive performance bonuses whilst almost all construction of new power stations are over-budget and long overdue. This is a signal of gross under-performance which disqualifies the reasons for awarding performance bonuses in the first place. 

Since load-shedding began in 2008, Eskom Executives have received over R73 million in bonuses excluding the R18.3 million revealed earlier this month. This is an insult to hard-working and poor South Africans who continue to struggle without a stable supply of electricity and basic services.

We urge the 11 Eskom directors and executives to help keeping the lights on for all South Africans by allowing the bonus funds to offset the tariff hikes even more so considering that ordinary taxpayers were forced to cover the bill for a R23 billion Eskom bailout in 2015. The average person in the street would be devastated to see bonuses of such magnitude being paid out.    

Eskom has claimed in the past that bonuses were awarded because the state owned entity has managed to intermittently stave off load-shedding. Eskom Executives would do well to remember that they have one job, to keep the lights on and that is what their salaries are for, bonuses on the other hand are for minimising costs to the taxpayer, which they have failed dismally.  

There are numerous jobs that will be lost as electricity prices increased due to tariff hikes, which will downscale or bankrupt numerous businesses who will be forced to retrench workers. Surely the Eskom Executives know that we are already in jobs crisis in the country and more frivolous use of state funds worsens the situation.  

The DA believes in putting the people of South Africa first and ensuring that they receive the services they pay for. We will not accept Eskom Executives act recklessly using state funds and further adding to the suffering of those who are jobless and cannot afford to pay for electricity. 

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 22 July 2016