BizNis Africa
Latest News
Afreximbank Board Members inspect Harare Regional Office new site
Members of the Board of Directors of the African...
Afreximbank announces Development of African Trade Centres
The African Export-Import Bank (Afreximbank) has embarked on a concept...
Africa50 signs development agreement with Senelec in Senegal
At its second annual Shareholders Meeting in Dakar, Africa50,...
Facebook in South Africa used by 29% of the population
Social Media use has intensified among South Africans during...
QNET to create new entrepreneurship opportunities in Tanzania
QNET, a company of Asian heritage and a part...
Patrice Motsepe listed on Forbes 100 greatest living business minds
To celebrate Forbes centennial, the publication has listedan A-to-Z...
FSDH Merchant Bank announces key investment by AFIG Funds in Nigeria
FSDH Merchant Bank, a financial services group in Nigeria,...
First time car buyer checklist
Owning a car is one of life’s milestones, bringing...
Nigerian industrialist Aliko Dangote speaks at Bloomberg Global Business Forum 2017
On the sidelines of the United Nations General Assembly,...
PwC report – user experience takes centre stage in Africa’s media industry
Amid shifting consumer preferences, rapid advances in technology and...

Collin Matjila, Eskom interim Chief Executive Officer

Eskom Senior Executives will not take their annual bonuses for the 2013/14 financial year, due to the parastatal’s ZAR225-billion revenue shortfall.

“Eskom’s senior executives will not take their annual bonuses, in light of the ZAR225-billion revenue shortfall experienced over the five-year period between 2013 and 2018.

“The executives at Eskom have acknowledged the financial constraints by agreeing to forgo their annual performance bonus this year as one of the efforts to cut costs,” said Collin Matjila, Eskom interim Chief Executive Officer.

In a statement on 4 June 2014, Matjila said the board had welcomed this move as the company is implementing efficiency intervention initiatives to achieve long-term financial sustainability.

In its application to the National Energy Regulator of SA (Nersa) in October 2012 for a tariff hike, Eskom asked the regulator to grant it a total 16% hike over the course of a five-year period.

The regulator approved a tariff increase of 8%, which left Eskom with a funding gap. Eskom then moved to set up a programme called the Business Productivity Programme (BPP) in 2013 to extract efficiencies within the business.

“It became necessary to rally around all our employees to deliver efficient services with less resources. We will continue to drive a conscious and concerted effort to cut waste across our business,” said Matjila.

At the beginning of Eskom’s financial year, April 2014, the Eskom Board and Executive Committee established a special joint committee that is considering a range of non-conventional sustainable funding solutions, including equity/equity-like instruments.

“While significant shifts have been made in terms of business operations to achieve internal efficiencies, the company is certain that this revenue shortfall cannot be achieved by belt tightening alone. It remains important to move towards a cost-reflective tariff urgently,” explained Matjila.

Additionally Eskom, through its shareholder ministry, the Department of Public Enterprises, is in discussions with the National Treasury to find a long-term solution.

The utility is acutely aware of its obligations and will continue to guarantee security of supply of electricity in support of economic growth.

“It is important that Eskom remains financially sustainable to enable us to keep the lights on, whilst we complete the new build programme that will ease the pressure on the national grid,” said Matjila.

Comments are closed.

Ver peliculas online
%d bloggers like this: