Eskom cancels bonuses for 2014/2015 financial year

According to a report, Eskom will not be paying out bonuses for the 2014/2015 financial year, as the power utility did not meet its targets. Among the failed targets were the inability to save money, power stations not being brought online on time, and Eskom’s failure to provide a continuous supply of electricity.
 
When asked, Eskom told Justmoney: “Eskom can confirm it will not be paying bonuses as per the short term incentive scheme policy.”
 
The announcement follows previous criticisms of the bonuses payed out to Eskom staff, specifically those is positions of power.
 
For example, previous CEO Brian Dames, chief financial officer Paul O’Flaherty, and financial director Tsholofelo Molefe, received a total of R24.4 million in bonuses last year. The power utility also paid out R62.8 million in performance bonuses, despite the parastatal reportedly suffering financial problems and struggling to keep the lights on.
 
According to the report, Eskom had set a savings goal of R9.8 billion, which had to be met in order for staff to qualify for a bonus. Together with the failure to meet this target, the power utilities inability to maintain sufficient energy availability, and Unit 6 of Medupi not being operational by the deadline of 31 may 2015, Eskom was not able to meet the necessary targets to enable staff to receive their bonuses.