15 September 2009

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 the 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.

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.

Contact: Eric Lucas MP,    082 557 2481 or
Liezl van der Merwe,          083 611 7470.