Axed Eskom boss was paid bonus

2010-06-08 11:06

Former Eskom CEO Jacob Maroga was paid a R2.3 million performance

bonus in February despite being fired for poor performance last year, the

Johannesburg High Court today.

His lawyer Vincent Maleka said last year when Maroga received a

letter from former Eskom chairperson Bobby Godsell concerning a salary increase

it also contained a handwritten note from Godsell thanking him for his good


When his job assessment was done he was told in August that he had

achieved a score of 70% which was regarded as very good.

The R2.3 million bonus was paid to him because the company believed

it was going to achieve its goal of R22 billion in savings by March this


The court heard bonuses were awarded for the company’s performance

from the period March 2008 to March 2009.

A portion of the bonus was deferred and would be paid after

December if the board was satisfied with progress towards its financial goal and

whether it was on track to meet the R22 billion savings.

Since the board was satisfied, Maroga was then paid the R2.3

million in February 2010.

Maleka said that this financial performance took place under

Maroga’s stewardship. The bonus related to a period while he was still CEO and

so it was duly paid to him.

Maleka said that Maroga failed to understand how he could then be

fired for poor performance in November 2009.

There was also no documentation stating that his poor performance

had been discussed with him.

Maleka, reading from an affidavit made by Maroga, said: “Eskom is

unable to prove that these matters were ever raised to me. It is unconscionable

that I should be dismissed on an allegation of poor performance with which I was

never confronted with.”

When the board met on October 28, 2009 his performance was not on

the agenda.

The company said that Maroga offered to resign at this meeting and

they subsequently accepted it.

Amid a dispute over whether he had resigned, the company then

announced in November that he had been fired for poor performance and


Maroga was claiming R85 million from the company for benefits he

would have accrued if he had stayed on until 2011 when his contract would have



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