DA complains of Blue IQ board fees

2010-05-26 08:07

Gauteng premier Nomvula Mokonyane’s spokesman would not be drawn on

a DA complaint that board members of the Blue IQ economic development agency

were earning “excessive” fees.

“We are busy restructuring all the agencies of Gauteng so that we

can have a few agencies that are within the mandate of this government,” her

spokesperson, Dumisani Zulu, said.

He would not comment on the issue of the salaries, but said the

reason for the restructuring was to save the money that “props up or runs” these


In response to questions put to the economic development MEC Firoz

Cachalia, DA MP Jack Bloom found out that the chairwoman of Blue IQ received R25

000 a meeting, and ordinary board members got R20 000 a meeting.

The highest paid member was Noedine Isaacs-Mpulo, who earned R901

000 last year as chairwoman of Blue IQ and five other agencies of the


At the same time, she was CEO of Lefatshe Technologies, Bloom


Younaid Wada got R724 000 last year and Johnny Sexwale got R493


Bloom said Cachalia had said the Blue IQ board members were paid in

accordance with their letters of appointment dated January 30, 2009.

He had requested a review of the levels of remuneration and a

“downward revision” because they had demonstrated a “significant lack of good

corporate governance“.

Bloom said a board member at a state owned enterprise like Eskom

receives total fees per annum of R477 815.

On average, chairs of boards of private sector companies receive a

payment of R834 000 per annum and board members get R362 000.

“With regard to the two board members who were paid despite being

employed in other government entities, which is contrary to a National Treasury

directive, Cachalia said that about R700 000 had been overpaid to them, but it

was not clear that this could be legally recovered although he regarded it as

‘completely improper’,” said Bloom, who found the fees “outrageous”.

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