Eskom seeks means to reduce costs & raise funds
Eskom announced on Monday that it’s pulling the plug on all bonuses because of its current financial crisis.
JOHANNESBURG - After Eskom announced on Monday that its employees and top executives will not be receiving bonuses this year, the utility said it's working on projects to reduce costs and raise funds to finish its build programme.
Eskom announced on Monday that it's pulling the plug on all bonuses because of its current financial crisis.
Last week, Amoj Singh from Transnet was seconded to Eskom as the acting Chief Financial Officer, to drive its R250 billion funding plan.
Eskom's Khulu Phasiwe said, "We need to raise that amount of money, R250 billion, to finish the projects that we currently are working on. But also most importantly, we've also set ourselves a number of key performance indicators, which include among others, costs reduction of about R9.8 billion."
Phasiwe said, "All 41,000 people within Eskom this year are not going to get any bonuses. The primary reason being we are currently engaged in R250 billion capital investment. We need to raise this money to finish the project that we currently are working on."
ACTING CEO'S 3-MONTH CONTRACT EXTENSION
Last week, Eskom confirmed that acting CEO Brian Molefe's contract had been extended for a further three months.
Molefe, who was at Transnet, was seconded to Eskom almost a month ago to take over from Matona.
Molefe has focused mainly on trying to find ways to avoid load shedding and raising funds for the state utility.
Eskom released a statement saying that after consultations with Transnet and Public Enterprises Minister Lynne Brown, it's decided to extend Molefe's contract.
This has been done to afford Molefe sufficient time to put into effect the strategies that he has already started implementing at the state utility in order to ensure its financial and operational sustainability.
Molefe is expected to stay on as acting CEO at Eskom until October unless a further extension is approved.
ESKOM ENQUIRY ENDS
Earlier this month Eskom cleared all four executives who were suspended earlier this year following an investigation into the state utility.
CEO Tshediso Matona and three others were suspended for the duration of the investigation.
Matona and two other have since parted ways with Eskom, while the remaining executive will be reinstated.
Eskom's former chairman Zola Tsotsi announced in March that Matona and three senior executives had been suspended to allow for an independent inquiry.
The former Eskom CEO challenged his suspension and approached the Labour Court, but in May he parted ways with the utility, with Eskom stressing that it was an amicable parting.
Matona said he's relieved the investigation had been concluded.