Now South Africa's Electricity Supply Commission, Eskom, is facing questions about executive compensation.

In the period January to March, Eskom, despite being in financial difficulties, has increased salary and bonus payments to its executive committee members by almost 50 percent to more than $2 million, Johannesburg's Times Live reported on Friday.

According to a report presented to Parliament, former Eskom Chief Executive Officer Jacob Maroga was paid $660,000 in salary and bonuses for the six months he worked during the 2009-2010 financial year, while cashing in an additional $147,000 in share options. Maroga, dismissed in October 2009, is currently awaiting a court decision on a claim for supplemental payments of more than $11.75 million.

The Parliamentary report notes that Maroga's successor, Brian Dames, received $788,000 during the January to March period and cashed in $104,500 in share options. The report noted that total compensation to Eskom's four executive committee members increased from $1,260,500 in 2008-2009 to $2 million for the period January to March 2010.

In contrast, in June Eskom workers called off a strike over wages after threatening to disrupt the World Cup games after Eskom raised its offer from 8.5 percent to 9 percent, a rate nearly double South Africa's current 4.6 percent inflation, adding a $207 monthly housing allowance, up from its previous offer of $138.

The trade union Solidarity representing Eskom electrical workers initially demanded a 15 percent salary increase. Solidarity's Deputy Secretary-General Dirk Hermann said at the time that not only the Eskom electrical workers but miners and metalworkers also employed by Eskom supported the proposed labor action.

In contrast to its largesse to its management, Eskom's annual report noted that it faced "cumulative cash shortfalls of $15.8 billion by 2013 and $26.2 billion by 2017."

National Union of Mineworkers spokesman Lesiba Seshoka said that his union, which represents the majority of Eskom's workforce, rejected Eskom's high rates of executive compensation while pleading poverty, saying, "What this is telling the poor is that we are living in Animal Farm, and the animals at Eskom are more important than the rest of us," adding of Eskom's increased electricity prices, "Money is going to the pockets of Eskom's executive committee who have no idea how to run the power grid."

Solidarity's Dirk Hermann observed simply, "Eskom has a history of paying huge bonuses during insensitive times. It sends a bad message to the public."

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