7 September 2015
The Eskom Integrated Report on the entity’s financial performance for the 2014/2015 financial year shows clearly that the entity is in a financial crisis – with a revenue having fallen from R 7 billion to R 3 billion during the period under consideration.
The report also reveals that an amount of R 51 million was incurred on fruitless and wasteful expenditure – and that the entity had a high failure rate in terms of performance targets met.
Yet, Eskom still spent an exorbitant R 50 million on executive salaries over this period – with an additional R 10.8 million being paid out for long-term incentive bonuses. This amounts to R 1.4 million per executive member.
The current executives at the helm of this failing entity are performing dismally. It is extremely unjustifiable that they are receiving these exorbitant pay checks and bonuses.
According to the report, the net profit of the group after tax declined from R7.1 billion in 2014 to R3.6 billion in 2015, with Eskom putting this down to the increased usage of the Open Cycle Gas Turbines and subsequent fuel costs incurred through using diesel to power these turbines.
Of the 37 performance targets, Eskom only met 51 % of its performance targets.