Eskom dishing out huge salaries to execs despite R20 billion loss

Eskom dishing out huge salaries to execs despite R20 billion loss

- Eskom's top executives will receive payouts totalling more than R44 million this year

- This comes despite Eskom making a loss of more than R20 billion for the last financial year

- The power utility's total wage bill also stands at over R32 billion following a 7% wage increase for employees

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Senior Eskom executives have reportedly received multi-million-Rand salaries, as well as sizeable golden handshakes.

Chief executive Phakamani Hadebe, who is stepping down, will receive a parting package of R8.6 million, while chief financial officer, Calib Cassim,will receive R3.24 million.

This comes despite Eskom recording a R20.7 billion loss for the 2018/19 financial year.

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The situation at Eskom remains dire, with its Kusile plant currently not adding any energy to the grid, Briefly.co.za has gathered. Indeed, Eskom's instability has been identified as one of the reasons for the loss of R70 billion in foreign investment this year. 

Additionally, the power utility's debt is so high that a R59 billion bailout is necessary over the next three years. Finance Minister Tito Mboweni has already admitted that this bailout will place a considerable burden on the taxpayer.

Nevertheless, Eskom's 13 group executives (excluding the CEO and CFO) will receive a payouts of R44 million this year, according to Business Tech. This is down from R51.6 million last in 2018, but remains high - especially considering the SOE's performance.

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It's not just executive salaries that are draining Eskom's coffers. Eskom's total wage bill stands at over R32 billion following a 7% wage increase.

Many of these employees are not necessary, with some experts suggesting that as many as two thirds could be removed without comprising the power utility.

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Source: Briefly.co.za

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