Eskom mum on bonuses
Power utility denies it has funds for only three months
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.