AfriBusiness demands answers from Eskom regarding bonus scandal

The national electricity supplier in South Africa, Eskom, has plunged South Africa into an electricity and economic crisis, but the top management of the company has been rewarded for it with bonuses of R50 million, despite the fact that its nett income has decreased with more than 50% from R7 billion to R3 billion.

The CEO’s of Eskom each received approximately R1,4 million according to the company’s integrated report for the 2014/2015 financial year. 

The business rights watchdog AfriBusiness will subsequently begin taking legal steps against the board of directors to determine if they were in a position to award the bonuses, and if not, personally hold the board of Eskom responsible.

“Personal accountability and responsibility is of critical importance for any company, how much more does this apply to a company under Government control working with the public’s money?” asked Stefan Pieterse, AfriBusiness’ National Spokesperson.

According to the Minister of Public Enterprises, Lynne Brown, Eskom’s results do not look bright at all.

AfriBusiness also requested an application in accordance with the Promotion of Access to Information Act (PAIA) that will enable the organisation to have access to the performance policies, performance agreements and evaluation reports of Eskom’s CEO’s that received bonuses.  

If Eskom does not supply answers within 21 days, AfriBusiness will launch an internal appeal and thereafter approach the court to force Eskom to make this information available.

“If it was a company in private ownership, heads would definitely have rolled, no company pays millions in bonuses while your profit has decreased by more than 50%,” said Cornelius Jansen van Rensburg, CEO of AfriBusiness.

Issued by Stefan Pieterse, AfriBusiness National Spokesperson, 8 September 2015