DA slams R11 million bonuses given to Eskom execs

The DA has called on Minister of Public Enterprises, Lynne Brown to explain why Eskom's top ten officials received R11 million in bonuses in 2014.

Natasha Mazzone, the party's Shadow Minister of Public Enterprises, said that Brown had confirmed the bonuses.

"South African’s cannot accept that while the rest of us are impacted by poor delivery a few people become very rich while costing our country billions.," Mazzone wrote.

She has apparently written to the  Chairperson of the Portfolio Committee on Public Enterprises, Dipuo Letsatsi-Duba requesting that she summon Minister Brown to explain why the bonuses were paid to these executives, "even as they were presiding over the collapse of the company."

She also wants to know what criteria is involved in awarding incentive bonuses, whether they are performance related or discretionary, what the total value of them for all the executive directors was over the period, and whether Brown approved them.

The DA meanwhile is also calling for the removal of Eskom board chairman Zola Tsotsi as head of an inquiry into the utility's performance.

Brown should appoint an independent body to carry out the investigation, Democratic Alliance MP Natasha Mazzone said in a statement.

Last week, Zola Tsotsi announced the suspension of four senior Eskom executives, including its CEO Tshediso Matona.

Tsotsi said at the time that the four had been asked to step aside to ensure the inquiry -- which would focus on the poor performance of Eskom's power stations, delays in bringing in the new Medupi station, as well as the utility's cash flow problems -- was transparent and uninhibited.

"This is an honest, down-to-earth inquiry to establish facts," he said.

Mazzone said her party had noted reports that Tsotsi had been granted full powers to determine the terms of reference, the contracting of investigators, and to oversee the progress of the investigation.

"The DA has long held that executive influence opens up the potential for abuse. However, in this case minister Brown must not exert undue political influence, but instead must act in terms of the law and her mandate by appointing an independent body to carry out this investigation.

"If there is to be any semblance of independence, fairness, and accountability, Mr Tsotsi cannot be the head of an inquiry tasked with investigating his own potential culpability in the sheer collapse of Eskom."

She said having Tsotsi head the inquiry was a clear conflict of interest.

"If Mr Tsotsi is allowed to remain the head of the inquiry its integrity is in question prior to it even beginning the investigation."

Mazzone said she would write to Brown requesting the minister to remove Tsotsi as inquiry head.

*Correction: The story previously claimed that Public Enterprises Minister Lynne Brown had announced that Eskom board chairman Zola Tsotsi would head the inquiry into the utility's performance.

It has been pointed out to Sapa by Brown's office that Brown had not made any such appointment.

The story further stated that Brown had suspended four senior Eskom executives. In fact the Eskom board had suspended the four executives and not Brown.