Andrew Etzinger, a spokesman for Eskom, denied yesterday that its senior executives were forfeiting their bonuses this year in response to past public outrage that they were extravagant in light of the utility’s financial problems and power supply uncertainties.
Eskom said the executives were foregoing bonuses owing to the R225 billion revenue shortfall experienced over the five-year period between 2013 and 2018.
But Etzinger said: “The financial position of the company is substantially different to the position a year ago.”
Last July, then Eskom chief executive Brian Dames revealed that he had pocketed R8.5 million that year, and the chief financial officer at the time, Paul O’Flaherty, took home R6m.
Eskom chairman Zola Tsotsi defended the bonuses, saying they were high because Eskom had to compete with the private sector for highly skilled personnel.
Eskom needed an additional R450bn last year and had borrowed R202bn the previous year.
When the country endured load shedding in March, DA leader Helen Zille called on Eskom executives to repay the bonuses they had received over the past two years as it was the “only ethical thing to do”. A public petition backing this call gained 6 794 signatures in two days after the load shedding.
In April, the Sunday Times reported Eskom would spend R500m on upgrades at its headquarters in Megawatt Park.
Etzinger defended the expenditure despite Eskom’s financial woes. – Wiseman Khuzwayo