Taxpayer-Funded Excess: South Africa’s State Leaders Pocket Millions Amid Economic Crisis
The Anatomy of Taxpayer-Funded Excess: R6 Million Salaries, Bonuses, and Bailouts
Millions of South Africans grapple with rolling blackouts, crumbling infrastructure, and a 33% unemployment rate. A bombshell investigation reveals that CEOs of state-owned enterprises (SOEs) are raking in up to R6.15 million annually, with bonuses doubling their paycheques. The Forever Yena Newspaper can exclusively confirm this. Taxpayer-funded excess has become the hallmark of South Africa’s crumbling public sector. Executives earn luxury salaries while their companies haemorrhage billions.
Take Thandiwe Mbekani, the CEO of the Central Energy Fund (CEF), who pocketed R6.15 million last year plus a R2.9 million “performance bonus” despite the CEF reporting a R4.7 billion loss. Meanwhile, the South African National Roads Agency (SANRAL), drowning in R47 billion debt, paid its CEO R5.8 million while hiking toll fees. “It’s robbery,” says Cape Town taxi driver Sipho Dlamini. “My fare increases go straight into their Mercedes payments.”
Performance? What performance? The Salary Scandal Defying Logic
A Forever Yena analysis of 15 SOEs reveals a chilling pattern. Seventy-six percent of SOE leaders received bonuses in 2023. This occurred even as their entities missed every key performance target. Eskom, which posted a R23.9 billion loss and subjected the nation to 280 days of load shedding, approved a R5.2 million package for its outgoing CEO. Transnet, whose rail collapse cost the economy R1 billion a day, gifted its boss a R4.9 million bonus, enough to buy 40 homes in Soweto.
It’s robbery. My fare increases go straight into their Mercedes payments.
“There’s zero accountability,” says economist Dr Lindiwe Nkosi. “The Public Finance Management Act (PFMA) lets boards set salaries with no oversight. It’s taxpayer-funded excess on steroids.” While private-sector CEOs face shareholder fury for poor results, SOE leaders enjoy taxpayer-backed job security. Even part-time SOE board members earn R933,000 annually, triple the average South African’s lifetime earnings.
Revolt Brewing: ‘Enough is Enough’, Say Citizens and Opposition
Public fury has reached a boiling point. The hashtag #PayBackTheMoney trended nationally after SANRAL hiked toll fees on the N1 highway. Opposition parties are demanding a law to cap SOE salaries at 15 times the national average (R300,000). “Why must a nurse work 120 years to earn what these CEOs make in one?” asks EFF leader Julius Malema.
South Africa’s leaders are milking a dying cow.
But the ANC remains split. Finance Minister Enoch Godongwana calls the salaries “indefensible”. Deputy President Paul Mashatile insists, “We must pay competitively to attract talent.” Talent? The CEF has had four CEOs in five years, each departing with golden handshakes.
Global Shame: SA’s SOE Salaries vs. the World
South Africa’s taxpayer-funded excess isn’t just a local scandal; it’s a global outlier. Germany’s state energy CEO earns 30% less than Eskom’s boss, despite leading a profitable entity. In Brazil, SOE salaries are capped at 10x the civil service average. “SA’s leaders are milking a dying cow,” says World Bank analyst Carlos Ferreira.
Conclusion: Who Will Stop the Gravy Train?
As Parliament debates the SOE Pay Bill, activists warn that without strict laws, taxpayer-funded excess will bleed the nation dry. “Fire the boards, claw back bonuses, and jail those who sabotage our economy,” demands union leader Zweli Mkhize. For now, the gravy train chugs on, fuelled by public rage and a broken system.
FAQs – South Africa’s SOE Taxpayer-Funded Excess
Why are South African SOE CEOs earning millions while their companies fail?
The salaries are set by SOE boards with little government oversight, allowing massive payouts regardless of performance. Since these companies are state-funded, taxpayers bear the cost even when SOEs lose billions.
How do South Africa’s SOE salaries compare to other countries?
In Germany and Brazil, state-owned CEOs earn far less compared to national averages. South Africa’s taxpayer-funded excess is extreme some SOE bosses make more than leaders of profitable global corporations.
Can the government legally reduce these salaries?
Yes, but it requires new laws, like the proposed SOE Payment Bill, to cap earnings. Currently, the Public Finance Management Act (PFMA) gives boards unchecked power to set executive pay.
What are citizens doing to protest these salaries?
Mass protests, social media campaigns (#PayBackTheMoney), and opposition-led lawsuits are pressuring the ANC to act. Many demand bonuses be returned and salaries slashed to match company performance.
Who benefits from keeping SOE salaries so high?
Politically connected executives and board members profit, while the ANC avoids accountability. Critics argue these inflated salaries are rewards for loyalty, not competence, leaving taxpayers to fund the fallout.
