Eskom is facing legal action for refusing to share “secret” information pertaining to the payment of bonuses to its top management for the 2014/15 financial year.
The business rights watchdog AfriBusiness said on Sunday it took further legal action against Eskom this week after the electricity provider refused to provide AfriBusiness with the requested information, which it called “secret”.
This comes after AfriBusiness requested Eskom in September 2015 in terms of the Promotion of Access to Information Act (PAIA) to release information about, among others, the performance agreements, evaluation reports and minutes of the meetings at which these bonuses were approved, as well as a list of all members of top management who received bonuses.
In August, Eskom told Fin24 that its employees had missed out on bonuses for the 2014/15 financial year. “It is true that we are not assigning bonuses,” spokesperson Khulu Phasiwe told Fin24. “It would be wrong to give bonuses if we don’t have money and especially during this time.”
Public Enterprises Minister Lynne Brown said in September that the only bonuses paid were long-term incentives awarded in 2011/12 financial year, vested in the 2013/14 financial, and which was payable only in June 2014.
Bonus records blocked
In June, Eskom also blocked a Fin24 request for records detailing the final remuneration – and any possible golden handshake – of two of the suspended executives who resigned before or on 1 June 2015. However, this was for information that will only be made available in the 2015/16 financial year.
Fin24 submitted a PAIA application to Eskom on 2 June 2015 to provide access to records that would have revealed the true cost of two executives leaving their post amid an internal inquiry.
Fin24 requested records that showed the cost to company (breakdown of remuneration package at time of exit) for ex-group capital executive Dan Marokane and ex-CEO Tshediso Matona, as well as their bonuses for the last financial period; and any exit and/or severance packages they may have received.
Eskom responded to the request on 24 June 2015, explaining that they were “deferring” the request.
“Eskom has decided to defer your access to this record because the record is required by law to be published, but is yet to be published,” Eskom told Fin24 in a written reply.
“The likely period for which access to the record is to be deferred is until Eskom’s annual financial statements is published,” it explained.
The financial records for this request would fall under 2016’s results, which would only become available in August next year.
In its reply to defer the request, Eskom invited Fin24 to explain why it should be granted access sooner. Fin24 submitted its response on 3 July 2015, but Eskom said it was not prepared to change its original decision.
Fin24’s lawyers have been weighing its options.
Information is personal – Eskom
AfriBusiness said Eskom refused to release the information, arguing that the information is of a personal nature. They also maintain that no bonuses were paid for the 2014/15 financial year.
“Eskom’s net income decreased by more than 50% during the 2014/15 financial year, yet bonuses amounting to millions of rand are paid with taxpayers’ money,” said Stefan Pieterse, spokesperson for AfriBusiness.
The group net profit for the year ended March 31 2015 was R3.6bn compared to R7.1bn in the 2013/2014 financial year. The net profit of the company was R2.8bn.
Electricity sales slipped by 0.7% in 2014/15, with the impact of load shedding contributing 548GWh to the decline, effectively 34% of the loss in sales.
AfriBusiness could take Eskom to court
AfriBusiness has now launched an internal appeal to obtain the information. If the appeal is unsuccessful, AfriBusiness will approach the court with an application to compel Eskom to release the information.
Matona and Marokane were suspended along with technology and commercial head Matshela Koko and finance director Tsholofelo Molefe on March 12, when its then chairperson Zola Tsotsi – who resigned later that month – announced an internal inquiry in the state entity.
Matona resigned on 19 May 2015 after failing to uplift his suspension in the labour court, while Marokane resigned on 1 June 2015. Molefe resigned on 25 June 2015, after Fin24 had submitted its application.
On 15 July, Eskom announced that the inquiry cleared all the executives of wrongdoing and reinstated the last remaining suspended executive, Koko. No further details of the inquiry were provided to the media and Eskom said it would hand over the findings to the government.