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“Eskom paid execs R50-million despite revenue drops” - DA

“Eskom paid execs R50-million despite revenue drops” - DA

The Democratic Alliance (DA) has hit out at Eskom for paying its executives large salaries despite the parastatal’s ongoing financial woes.

In a statement, party Shadow Minister for Public Enterprises, Natasha Mazzone, said information obtained from Eskom’s recently tabled Integrated Report, shows that R50-million was spent on the salaries of executives for the 2014/2015 financial year despite a R3-billion decline in revenue.

She also stated that an additional R10.8-million was paid out in long term bonuses, and that the party would be submitting an application to have Minister Lynne Brown and Deputy President Cyril Ramaphosa appear before Parliament’s Portfolio Committee on Public Enterprises to explain the pay-outs.

“Of the 37 performance targets, Eskom only met 51% of its performance targets. Of those targets not met, the most significant were outstanding maintenance backlog, energy availability, debt / equity, unplanned capability loss and generation capacity installed and commissioned,” Mazzone said.

“The current energy crisis has caused economic growth to grind to a halt, leaving unemployed South Africans very little hope of finding work. Minister Brown must explain why these unacceptably high salaries remain in place and what she is going to do to decrease these salaries to a more appropriate level for the future”.

In tabling the report last month, Acting Eskom CEO, Brain Molefe, said an estimated R20-billion in outstanding funds is still needed, despite the utility having saved R49.5-billion in costs during year.

He also denounced allegations that the power supplier, which last implemented load shedding four weeks ago, was insolvent, saying a lack funding and not generating capacity was the result for “pushing us into a negative position”.