Eskom only has enough cash to last it for the next three months — but it still wants bonuses to be paid to axed CEO Brian Molefe, suspended acting chief executive Matshela Koko and others, according to a report by the Sunday Times.
This after Sunday Times reportedly saw the power utility’s leaked financial statements which showed Eskom was sitting on its last R20 billion and would be unable to pay its November salaries unless it receives a bailout.
The short-term bonuses proposed by Eskom total R5.5 million for three of its most controversial former and current executives. Molefe who was set to receive a R30 million pension payout earlier this year will now receive a R2.1 million bonus for the eight months he served as CEO in the 2016-17 financial year.
Koko, who is currently suspended for allegedly failing to disclose a conflict of interest because of his stepdaughter’s shareholding in a supplier, is set to receive a R1.5 million bonus.
Finally, Chief financial officer Anoj Singh, who has multiple links to the controversial Gupta family, is scheduled to receive a R1.9 million windfall.
According to the Sunday Times report, the postponement of Eskom’s results announcement, from last Tuesday to Wednesday this week, was to avert a crisis that would have required Eskom to pay back R15 billion owed to the Development Bank of Southern Africa.
The recall of the facility, which was granted in 2010 and has been exhausted by Eskom, would be triggered by Eskom’s failure to achieve a clean audit outcome — a condition of the loan.
Earlier this week, the beleaguered state-owned power utility said it was considering selling assets as part of a 14-point plan to revive an economy that’s in its second recession in almost a decade.
However despite the new steps being taken, the power producer, could find itself out of cash and in need of another government bail-out less than three years after it received a R23 billion cash injection and another R60 billion debt write-off from the government.
You can read the full story in today’s edition of the Sunday Times.