Eskom execs to receive bonuses as long as targets are met, says CEO
The power utility is in a dire financial situation with declining profits.
CAPE TOWN - Executives and employees at struggling Eskom will receive bonuses this year just as long as they meet their targets.
This is despite the power utility being in a dire financial situation with declining profits.
Eskom, which needs R72 billion this year to be able to meet its financial obligations, saw its profits decline by R4 billion.
Eskom interim chief executive officer, Phakamani Hadebe, told MPs on Tuesday that the company had to urgently secure a bridging loan of R20 billion after receiving a nominal tariff increase of just 2.2% in 2017/18 financial year.
Eskom appeared before Parliament’s energy oversight committee to brief MPs on how the National Energy Regulators latest approved tariff increase of 5.2% would affect the company.
Although Eskom incurred massive losses during the last financial year, it still paid employees a total bonus amount of R4.2 billion.
The power utility is not ruling this out, even during this fiscal, despite financial challenges which are exacerbated by declining sales and escalating municipal debt.
Acting CEO Phakamani Hadebe: "The year is not over and bonuses are paid according to the taregts that have been set. Eskom, although we are two months down the line, will evaluate whether those have been made."
Hadebe, who has been acting in the position for just two months, says the targets were set by the previous board.
He says they will come up with a clear plan to articulate how the company will manage its debt and finances going forward.