In South Africa, the Sunday Times announced this weekend that Eskom bonuses will not be paid out to employees of the state-owned power utility for the current financial year.
Citing an internal email sent by Eskom’s head of human resources, Matome Makwela, the report went on to say, that Makwela explained in the email that Eskom bonuses will not be paid as the utility had not made its ‘money saving targets’, which was set at ZAR9.8 billion ($792 million), and that the required availability factor of 77% fell short at 73.3%.
Further, unscheduled maintenance outages were too high at 17%, versus the required goal of 10%.
Remuneration policies and Eskom bonuses previously paid out have been highly criticised amid the ongoing power and financial crisis in the country.
Eskom paid its top executives a total of ZAR60 million ($4.8 million) in the 2014 financial year, up from ZAR57.4 million ($4.6 million) the year before.
Over 40% of this amount was paid to the group’s top three executive directors.
Former chief executive, Brian Dames, who left the utility at the end of March 2014, took home a pay package of ZAR15.4 million ($1.2 million) – the highest salary paid by the company in more than a decade, stated the Sunday Times.
Resolve the energy crisis: Nene
In further South African news, Finance Minister Nhlanhla Nene advised that the country needs to urgently resolve its energy crisis to boost the struggling economy, Fin24 reported on Friday.
“We are working hard to resolve the energy crisis, it’s an urgent matter. If we don’t address it the economy will choke”, Nene said, speaking at a presentation by the Organisation for Economic Co-operation and Development (OECD) in Johannesburg.
According to the OECD South Africa needs to improve business regulation to support job creation and privatise state-owned companies in markets with sufficient competition.
South Africa also needs to boost electricity generation by speeding up the renewable energy independent power producer programme (REIPPPP) and facilitating private co-generation, the international think tank said in a report.
Growth in the country was also being hampered by inadequate tax revenue needed to support infrastructure projects, Fin24 reported.
“The public sector will face considerable resource needs in the years ahead to expand social and economic infrastructure”, said the OECD.
“Meeting these needs will require increased revenues, but this must be equitable and not penalise growth.”