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IFP: Statement by Eric Lucas, Inkhata Freedom Party MP, on ESKOM CEO salary increase (15/09/2009)

15th September 2009

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The Inkatha Freedom Party believes that the latest announcement that
Eskom CEO Jacob Maroga will be receiving a 26.7 percent salary
increase has destroyed any possibility that the cash-strapped power
utility will ever be able to regain the public's confidence.

"What is absolutely unacceptable is that Mr Maroga gets rewarded a
substantial increase while consumers have to stomach a 34% rise in the
price of electricity, while another steep electricity tariff hike
looms. The IFP condemns the increase in light of recent reports that
Mr Maroga ignored a series of confidential internal memos, warning of
an energy crisis in South Africa, and we call on the Minister of
Energy to explain on what grounds Eskom awarded this massive
increase," said Eric Lucas MP, the IFP's spokesperson on energy.

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The IFP said that Eskom's salary increases must be performance related.

"The IFP believes that all Eskom bonuses and salary increases must be
linked to the power utility's ability to supply South Africans with a
reliable, adequate and constant power supply and that salary increases
should be kept in-line with inflation. Handsomely rewarding the CEO of
a company that recently posted a record annual loss is not only
unjustifiable and ridiculous but it raises serious questions about
accountability," said Lucas.

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