Eskom is broke – Plans to pay huge bonuses to executives

Eskom, which is struggling to survive financially, wants to pay millions in bonuses to axed CEO Brian Molefe, suspended acting CEO Matshela Koko, and others.

Molefe and Koko were implicated in questionable conduct while in charge of the power utility.

The Sunday Times reported that Eskom “has asked Public Enterprises Minister Lynne Brown to approve short-term bonuses totaling R5.5 million for three of its most controversial former and current executives”.

The bonuses form part of a “R13-million payment proposed for Eskom’s top executives”, stated the report.

The Sunday Times added that “Eskom has only enough cash to last it for the next three months”.

Scandals

The news comes after Eskom said auditors raised concerns about issues relating to Koko and Molefe.

Eskom spokesman Khulu Phasiwe said on Monday that the company’s external auditors reported two irregularities to the Independent Regulatory Board of Auditors.

The first issue was Eskom’s relationship with Impulse International, which received contracts while Koko’s stepdaughter was a non-executive director at the company.

The second related to the reinstatement of Molefe as CEO in May. He was removed three weeks later and a legal case is ongoing.

Molefe and Koko were also identified in a report by the graft ombudsman last year, suggesting Eskom gave preferential treatment to members of the Gupta family.

The report related to the awarding of coal-supply contracts and helping them buy Optimum Coal Holdings.

Law firm Cliffe Dekker Hofmeyr has also suggested that Koko face a disciplinary hearing, following its probe into the Impulse International deals.

The law firm proposed that all contracts awarded to Impulse International after Koko’s stepdaughter joined should be investigated.

Now read: Former Eskom acting CEO must face disciplinary hearing – Law firm

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Eskom is broke – Plans to pay huge bonuses to executives