Eskom mum on bonuses

Power util­ity de­nies it has funds for only three months

The Witness - - NEWS -

CAPE TOWN — Al­though Eskom re­jected me­dia re­ports of it fac­ing a cash cri­sis, the power util­ity is tight­lipped on bonuses for three of its most con­tro­ver­sial for­mer and cur­rent ex­ec­u­tives.

Eskom wants to pay short­term bonuses to­talling R5,5 mil­lion to axed CEO Brian Molefe, sus­pended act­ing chief ex­ec­u­tive Mat­shela Koko and chief fi­nan­cial of­fi­cer Anoj Singh, re­ported the Sun­day Times.

It said ac­cord­ing to leaked fi­nan­cial state­ments, the power util­ity only has R20 bil­lion, which will likely only last for the next three months. This means that Eskom may not be able to pay salaries to its 49 000 em­ploy­ees come Novem­ber, un­less it re­ceives a bailout.

Eskom de­nied that it is fac­ing a cash cri­sis and that it has only enough cash to last for the next three months.

“Ex­ter­nal au­di­tors have con­firmed Eskom as a go­ing con­cern, and as a re­sult the com­pany sees th­ese re­ports as be­ing in­ac­cu­rate and mis­lead­ing,” it said in a state­ment yes­ter­day.

“It is im­por­tant to re­it­er­ate that Eskom is not fac­ing any liq­uid­ity chal­lenges, and that the com­pany is con­fi­dent that it will main­tain suf­fi­cient liq­uid­ity to sup­port its op­er­a­tions,” the power util­ity em­pha­sised. How­ever, it fell short of com­ment­ing on the al­leged bonus pay­ments of R2,1 mil­lion for Molefe, R1,5 mil­lion for Koko and R1,9 mil­lion for Singh. Eskom said its oper­a­tional and fi­nan­cial per­for­mance will be an­nounced on Wed­nes­day.

This af­ter it post­poned its fi­nan­cial re­sults pre­sen­ta­tions, which had been due to take place last Tues­day. The DA called on Min­is­ter of Pub­lic En­ter­prises Lynne Brown to stop the han­dover of pub­lic money to Eskom ex­ec­u­tives.

“The DA pub­li­cally calls on Min­is­ter Brown to re­ject the re­quest to ap­prove short­term bonuses of R5,5 mil­lion for three for­mer and cur­rent ex­ec­u­tives, which forms part of an R13 mil­lion pay­ment for top ex­ec­u­tives”, said DA spokesper­son on pub­lic en­ter­prises Natasha Maz­zone.

“It is ut­terly un­ac­cept­able for ex­ec­u­tive bonuses to be paid while or­di­nary em­ploy­ees may not be paid.”

Maz­zone said Eskom’s fi­nances are in sham­bles, based on the re­ports, which claimed that the power util­ity’s in­come de­creased from R5,3 bil­lion last year to R900 mil­lion in June, while the in­ter­est it ac­crued on its debt jumped to R38 bil­lion from R31 bil­lion. — Fin24.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.