The Democratic Alliance (DA) has condemned what it describes as “exorbitant” executive salaries within South Africa’s state-owned enterprises (SOEs), calling for immediate reform and accountability in the wake of shocking new data revealing over R400 million spent annually on executive pay – despite ongoing bailouts, service delivery failures, and poor audit outcomes.
According to parliamentary responses and publicly available remuneration data, senior executives at public entities are earning salaries that far exceed national guidelines set by the Department of Public Service and Administration (DPSA), with little regard for performance or fiscal sustainability.
“This reflects a broken system with weak oversight and eroded public accountability,” the DA said in a statement.
Top earners in the spotlight
The DA highlighted several examples:
- The Development Bank of South Africa (DBSA) CEO earns R15.5 million annually, making them one of the highest-paid public servants in the country.
- Transnet’s CEO pockets R8.5 million, even as the entity struggles with port inefficiencies and increasing reliance on the private sector after receiving a R47 billion bailout in 2023.
- At the Passenger Rail Agency of South Africa (PRASA), the CEO earns R7.8 million, despite the agency’s ongoing infrastructure woes and audit disclaimers.
- The Road Accident Fund (RAF) CEO receives R7.1 million, while the fund remains technically insolvent.
Other entities named in the report include the CSIR (R6.92 million), SAA (R6 million), Rand Water (R5.4 million), and PetroSA (R5.8 million) – many of which continue to underperform or rely heavily on government support.
Public money, private rewards
The DA warned that this level of spending undermines service delivery and public confidence in the government’s ability to manage state resources effectively.
With only 13 of 40 government departments reporting so far, the total national expenditure on executive pay could be significantly higher than R400 million.
“If such excesses are occurring at senior levels, it is reasonable to infer that similar practices may exist across all employment tiers within SOEs,” the DA said.
Calls for reform
The party is demanding that the Minister of Public Service and Administration, along with the Minister of Finance, implement the following:
- A standardised executive remuneration framework for all public entities
- Mandatory justification and public disclosure of any salary exceeding DPSA guidelines
- Parliamentary oversight and collaboration to ensure alignment with public service principles
They argue that executive pay should reflect performance, especially in entities that have repeatedly failed to deliver on their mandates or required state bailouts.
“Unjustifiable and offensive”
The DA has described the excessive salaries as an “affront” to millions of ordinary South Africans who continue to endure failing services, from collapsing rail infrastructure to persistent water outages and electricity disruptions.
“The South African public deserves competent and ethical service delivery. These excessive salaries remain not only unjustifiable but an affront to the millions who rely on basic services that are consistently failing.”
The DA has vowed to pursue fiscal discipline and performance accountability through legislative channels and continue exposing what it sees as a culture of excess and impunity in state entities.
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