Tuesday, September 29, 2009

Public entity bosses scoop big in bail outs

By Ofentse Mokae
29 September 2009

South African Airways 2008/09 annual report tabled out today, has revealed that former CEO Khaya Ngqula was paid over R13 million on settlement.

This is despite him being under investigation for mismanagement, conflict of interest and procurement irregularities.

The figure includes R9.3 million paid out for the termination of his contract.

Ngqula was paid the amount despite SAA posting an operating loss of R72-million for 2007/08, during which time the airline was under his management.

His payout follows that of former SABC CEO Dali Mpofu who received a R12 million pay out after his exit from the state entity; that has also been rocked by financial crisis.

In a statement the Democratic Alliance says the payment is a slap in the face of the South African taxpayer.

“This happens and the ANC government shows no signs of adopting the requisite attitude necessary to address the problem. We as DA will be asking parliamentary questions on the matter,” the statement said.

The statement further says the consequence of this is that the public has to pay twice for poor management.

“First, it is required to fit the bill for a bale-out, when the relevant institution loses money; then, instead of their being consequences for that poor management, it is forced to once again payout the relevant CEO,” the statement concluded.

Earlier the current CEO of Eskom, Jacob Maroga, was awarded a R5 million salary increment despite Eskom posting R9-million in loss.

In another similar development state arms company Armscor, revealed that CEO Sipho Thomo received a total increase in remuneration from R1.7 million to R3.27 million an 89% increase.

Public Enterprises Minister Barbara Hogan is yet to respond to these issues from parliamentary questions submitted by members of the opposition, some dated from as early as July this year.


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