South Africa: Petrosa – Bonuses for Failing Soe Executives Must Be Paid Back
The DA calls for the R17.3 million in bonuses, paid by PetroSA to its top executives, to be paid back immediately and the legal opinion which informed this disastrous payment must be made public and tabled before Parliament.
This is after it was revealed today that the state-owned entity paid eleven executives a total of R17.3 million in bonuses, even though these bonuses were not approved by PetroSA's board.
The bonuses were paid out based on a legal opinion which stated that "affordability would not qualify as a justifiable reason to not pay the bonuses". What is disturbing is that this opinion was obtained by Head of legal services, Mokgaetsi Sebothoma, who received a massive R2.4 million payout.
The payment of bonuses to executives comes at a time when the state oil company recorded an immense loss of R14.5 billion due to a number of disastrous projects and failure to meet key targets.
In light of austerity measures and the fact that PetroSA staff members have not received bonuses for two years, it is manifestly unfair for executives, many of whom have overseen failed projects and have not met targets, to received millions in bonuses.
We cannot afford a culture in state-owned entities where poor decisions and lack of accountability by top executives are rewarded with the payment of astronomical bonuses.
Source: Democratic Alliance