Eskom pulls plug on bonuses, AGM set for August

Cape Town – Eskom employees missed out on bonuses this year, spokesperson Khulu Phasiwe confirmed on Monday, adding that its AGM will take place in the first week of August 2015.

“It is true that we are not assigning bonuses,” he told Fin24. “It would be wrong to give bonuses if we don’t have money and especially during this time.

“The regulator (Nersa) said we need to improve efficiencies,” he said. “We don’t have the money and we did not meet the targets.”

He said there were a number of key performance targets that were not met, such as avoiding load shedding. “You can’t reward people for not meeting their targets,” he said.

Phasiwe hoped the move would also send out a strong message that Eskom was committed to getting its house in order, while not being reckless. “We can’t go over and offer things we don’t have and we can’t be reckless,” he said.

Eskom head of human resources Matome Makwela told staff in an email that Eskom had not hit its money saving targets, which was set at R9.8bn, and that the required availability factor of 77% fell short at 73.3%, according to the Sunday Times.  Load shedding was said to be too high at 17%, compared to a 10% goal.

Bonus criticism

Eskom has been criticised in the past for giving high bonuses to executives who were not meeting targets.

The payment of about R10.8m in "incentives" last year to 10 top Eskom officials was challenged by the DA in March 2015, with the party calling for the executives to pay back the money.

"The DA has previously called for Eskom executives to pay back the estimated R63m they have been rewarded with since load shedding began in 2008. We see no reason why this call is not applicable in this circumstance,” DA MP Natasha Mazzone said at the time.

Financial results coming soon

Eskom has yet to release its financial results for the year ended March 2015, but Phasiwe said Eskom was “still within our time”.

“We will be issuing our financial results in the first week of August,” he said.

Eskom will hold a closed annual general meeting (AGM) in Cape Town and then will hold an official press conference to “share how the company has performed” the following day in Johannesburg.

“It is not unusual to hold a closed AGM,” he said. “The only difference this year is that we will hold the two events on separate days, when before it would take place on the same day.”

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.45
-1.6%
Rand - Pound
19.83
-1.0%
Rand - Euro
16.72
-0.6%
Rand - Aus dollar
11.56
-0.3%
Rand - Yen
0.12
-1.7%
Gold
1,778.99
-1.3%
Silver
20.26
-2.7%
Palladium
2,159.00
-3.1%
Platinum
937.50
-3.0%
Brent Crude
98.15
-1.5%
Top 40
64,022
+0.0%
All Share
70,741
+0.0%
Resource 10
63,315
-1.2%
Industrial 25
86,967
+0.5%
Financial 15
16,154
+0.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders