South Africa P.I.G.: TRANSNET

Fat-cat parastatal bosses come and go, but they get the cream

Seven of the top-10-earning executives at SA's parastatals have either left or are leaving. And a number of them left under a cloud. Moreover, eight of the top-paid heads of parastatals would have ranked among SA's 150 biggest earners in private companies. <img alt="" border="0" id="BLOGGER_PHOTO_ID_5547320646424532418" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhc9HPqtBDJ54Ow53tM-ev4HUYvI47-xmukVm7r5sRWXwGBxGKRwsD8vW2uAzzTVebJ1Wku4bmU8C1sFeF4M3zaJJOg4D_Q_2mi1UeGdUXg5Cg2ORWd02d9Mb8nAiXP6q2hOLoNaW5OItjm/s400/corruption-theft.jpg" style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 360px; DISPLAY: block; HEIGHT: 305px; CURSOR: hand" />Research into parastatal pay, carried out by Who Owns Whom, is done on a selected number of parastatals, so it does not capture the pay of all directors of state-owned entities. Pay at entities such as Eskom, SAA, Denel, and the SABC should be seen in the context of regular news about failure, controversy and financial bail-outs. Khaya Ngqula, the former head of SAA, tops the rankings, having earned R13.7-million in 2009. This included his controversial R9.35-million "termination benefit" - the amount he was paid to go away. Behind was Geoffrey Qhena of the Industrial Development Corporation, one of the few who still has his job. Qhena earned R10.3-million last year. This included a performance bonus of almost R7-million. The IDC and Transnet were among the biggest payers, with numerous directors earning big packages. Jacob Maroga, who ranked 10th, was sacked from Eskom in late 2009 with no official golden handshake, but R9-million in previously awarded shares will be transferred to him through 2010 and up to March 2011. Universally acknowledged to have managed Eskom poorly, Maroga enjoyed a salary of more than R5-million in 2009. The court has since reserved judgment in his subsequent bid for a payout for unlawful dismissal. Maroga is suing for benefits he would have accrued into 2011 - to a total of R85-million. Eskom CEO Brian Dames faces a huge task if he is to alter the organisation's trajectory and justify the recent rate hikes and requests for funding, but the pain will be eased by his own hefty pay packet: a salary of R3.3-million, a short-term bonus of R1.22-million, another of R946000 and a payment of R230000, listed as "other". Over at poorly performing Telkom, CEO Reuben September, who has since left, pulled in a performance bonus of R1.84-million, with other benefits of R7.43-million on top of a salary of R3.6-million to rake in a total income of R12.8-million (down from a hefty R19.1-million the year before). In October 2009 new SAA board chairman Cheryl Carolus famously took action against Ngqula (the new SAA board apparently paid R20-million for a forensic report) for cash spent outside of his financial mandate that needed to be paid back, announcing a suit against Ngqula for R30.8-million, with further thinking required on how to recoup R141-million in misspent sponsorship money. SAA paid bonuses of R60.7-million to 153 managers over three years, at an average of R400000 per employee, as part of a retention scheme that Ngqula introduced. The pending court action will eat up yet more taxpayers' money. Similarly, Dali Mpofu was paid R12-million when he left the SABC, even though the broadcaster was R800-million in the red at the time. Siyabonga Gama, the CEO of Transnet freight rail, was dismissed for breach of governance requirements in respect of two procurement contracts before he could lead the running in the race to fill the position of Transnet CEO. The position has been vacant for over a year since Maria Ramos stepped down. Gama's pay for his last year was more than R4-million. Executive directors and senior managers at three parastatals - Transnet, Eskom and the IDC - were paid an average salary of R3.7-million per year for the past three financial years to the end of March. Eskom posted the worst performance of the three, but its directors were the most highly paid. In all, Transnet's three-year wage bill amounted to R245.6-million for 23 directors and senior managers, while Eskom was estimated to have paid R139-million in the same period, an average annual remuneration of R5.8-million for eight directors and senior managers. The IDC paid its 20 directors (including those at subsidiary Foskor) and senior managers R170.6-million over the three years, at an average of R2.8-million each.

Fat-cat parastatal bosses come and go, but they get the cream

Seven of the top-10-earning executives at SA's parastatals have either left or are leaving. And a number of them left under a cloud. Mor...

12:37 PM

SA's future NOT positive due to "ineffective" governing

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqt1gEZ4UZ-Sl1htceq2SmF2KoDhveJ_XeJFxoam6S-HCsBZ1Y-ZHDukF4Ud5wonqtqu67s3b1LAIv8Xy6ps0TnJr42SkbnDiFiGk4viFcudJOzSP36do0oOwch1LESKIAO5L8Ql0MAKA/s1600-h/landclaims.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5243437400990499794" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqt1gEZ4UZ-Sl1htceq2SmF2KoDhveJ_XeJFxoam6S-HCsBZ1Y-ZHDukF4Ud5wonqtqu67s3b1LAIv8Xy6ps0TnJr42SkbnDiFiGk4viFcudJOzSP36do0oOwch1LESKIAO5L8Ql0MAKA/s400/landclaims.jpg" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" /></a>Johannesburg - International credit rating agencies are seemingly getting more worried about where the SA economy and political situation are heading, although they are not openly expressing their concern yet. It now looks increasingly unlikely that SA's international credit ratings could be upgraded in the foreseeable future. Instead, the ratings are more likely to be downgraded, even if the process would be gradual. The international agency Fitch has already given an indication about its views on SA's future by downgrading its outlook from positive to stable. On face value, SA still has an investment rating of BBB+, but it could signify the start of a downgrade. The agencies are worried about political situation, with the current challenges to the law and property rights, but also structural problems in the economy which chould limit its growth potential. Eskom struggling? Any lowering of its ratings could have serious implications for the economy, because it could dampen the capital flow from overseas, which SA desperately need to finance its big current account deficit. It is particularly bad news for state institutions like Eskom and Transnet, which have to borrow overseas to finance big infrastructure programmes. There are already some indications that Eskom, whose own credit rating has already been lowered by Moody's will face an uphill battle to get the R150bn - which it need to borrow overseas to finance its expansion - at manageable interest rates. The problem is worsened by the international credit crisis, which makes financing more difficult and expensive to obtain. Tertius Smith, chief executive of Fitch in SA, says it isn't rating agencies role to express concern about government policies. But he referred to "ineffective" governing which undermines the economy's potential to grow at a faster pace. Also the restraints on South Africa's growth potential, like the widening deficit on the current account and the low levels of savings.

SA's future NOT positive due to "ineffective" governing

Johannesburg - International credit rating agencies are seemingly getting more worried about where the SA economy and political situation ar...

11:06 AM

State-owned Transnet faces R20-billion claim over Cape land sale

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg05lLKB_3FezOuVnw2G_QxylXjlBZrHZBWHtz_JBYe3KbAhFhRSXd9Hc2WpIfyuG1Wjoz-xOgxeYGMQ2XOZ4OB_7-z_9vgSj_yogjP-wwM3YpB4fECQVnoyeWTgeEwliYMDl3Qpbzs4VQ/s1600-h/300975781_b4ebb021b8.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5238053058159088962" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg05lLKB_3FezOuVnw2G_QxylXjlBZrHZBWHtz_JBYe3KbAhFhRSXd9Hc2WpIfyuG1Wjoz-xOgxeYGMQ2XOZ4OB_7-z_9vgSj_yogjP-wwM3YpB4fECQVnoyeWTgeEwliYMDl3Qpbzs4VQ/s400/300975781_b4ebb021b8.jpg" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" /></a>Transnet secretly sold prime Cape Town coastal land and a vast sea area when it offloaded the V&A Waterfront for R7-billion to investors from London and Dubai. Now the parastatal is frantically lobbying MPs in a bid to block legislation that would make coastal land public property. The much-vaunted sale of Cape Town's major tourist attraction in 2006 included the transfer to the new owners of 22km of coastline and 90 square kilometres of sea, stretching from Table Bay to Robben Island. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqfgs3P6AJOcj-5GB6wp1TiFnfLWOD1qeXaS0GZHDyKxtqrpH1DzHAwJLLHCbxM9RcDR-tSefZ9hmOgqGrY7WH-eZ9nsKo46s7CxLkA3ilvGwd6e3usaLKezwU6BhNgqmWbtH927thSQI/s1600-h/300975781_b4ebb021b8.jpg"></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOPfX_aWPDwFLeYllfo8WH0rpuIrRoPl0eMHcINtH5dyzwgnkJXBE5MMMM_dh_ZhM8euVvPLhs3BD-fRjvaFMIDVsZwut65w3rn5ugROtqbGaq5hbyui6Ltxm8cYOdfydP4j_4P6H0Nz8/s1600-h/Waterfront3.jpg"></a>The new owners are Lexshell, which is owned by Istithmar PJSC, an investment arm of the Dubai government, United Kingdom investor London & Regional, and a local black economic empowerment group.If the integrated coastal <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOPfX_aWPDwFLeYllfo8WH0rpuIrRoPl0eMHcINtH5dyzwgnkJXBE5MMMM_dh_ZhM8euVvPLhs3BD-fRjvaFMIDVsZwut65w3rn5ugROtqbGaq5hbyui6Ltxm8cYOdfydP4j_4P6H0Nz8/s1600-h/Waterfront3.jpg"></a>management Bill is approved, Transnet faces a potential R20-billion claim from Lexshell for failing to fulfil its contractual obligations. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhS-koY2hYjFcVFn99s-G-9u5X5K-fd84ePNOyF_djKsBUuIrO1MZhEw1ORb-2otaS7u838P8GsmPEyjqii5IeDt2O4gtE41ns0tq5dTm0b5OVU3shmo71GWKuv5_UdsGR6_MOtJSNNQkE/s1600-h/oltablebay.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5238068826625835810" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhS-koY2hYjFcVFn99s-G-9u5X5K-fd84ePNOyF_djKsBUuIrO1MZhEw1ORb-2otaS7u838P8GsmPEyjqii5IeDt2O4gtE41ns0tq5dTm0b5OVU3shmo71GWKuv5_UdsGR6_MOtJSNNQkE/s400/oltablebay.jpg" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" /></a>Lexshell's plans include a residential marina development (the Granger Bay Marina) to be developed on the western side of the Waterfront. Transnet spokesperson John Dludlu said he could not comment on potential financial losses. “It is difficult to comment on the value of any potential claim against Transnet should it not be able to honour its contractual obligations,” he said. “However, it is most unlikely that any claim against Transnet would succeed if it is prevented by law from honouring its obligations in respect of reclamation.” He insisted that the parastatal had obtained approval to dispose of the Waterfront and was “not obliged” to disclose details of the sale agreement to anyone. - Sapa

State-owned Transnet faces R20-billion claim over Cape land sale

Transnet secretly sold prime Cape Town coastal land and a vast sea area when it offloaded the V&A Waterfront for R7-billion to investors...

2:43 AM

South Africa P.I.G.

Fat-cat parastatal bosses come and go, but they get the cream

SA's future NOT positive due to "ineffective" governing

State-owned Transnet faces R20-billion claim over Cape land sale

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