Sunday, January 24, 2010

Business News From South Africa

Eskom boss demands R85m

Former Eskom boss Jacob Maroga has slapped the embattled parastatal with a massive R85-million lawsuit. In a civil claim filed at the High Court in Johannesburg, the ousted Eskom CEO demands "reasonable damages" unless he is reinstated to the position he left under a cloud at the end of last year.

The 49-year-old is suing his former employer, its acting CEO and chairman Mpho Makwana, and minister of public enterprises Barbara Hogan.

He accuses the board of conspiring to illegally fire him under the veil of a voluntary resignation.

Apart from shedding light on the squabbles that led to his downfall, Maroga's court papers also detail the lavish lifestyle enjoyed by the CEO of Eskom - at taxpayers' expense.

Maroga, whose five-year contract had been due to expire in 2012, is demanding everything he was entitled to had he not been given the boot.

This includes R14.5-million for loss of salary, R45-million for incentives and R7-million for other benefits.

Read the rest here.


Powerless SA repels investors

Marcia Klein : Comments made by GlaxoSmithKline's Devan Pillay to the National Energy Regulator of SA on Eskom's proposed electricity price hike have become open to all sorts of interpretation, causing quite a stir.

Although reports on exactly what was said seemed to vary, they indicated that the multinational was ready and eager to pull out of South Africa - and the news spread quickly.

The truth, however, is a little less shocking.

GSK's vice-president and general manager of consumer healthcare, Jonathan Girling, said the company took a decision in 2008 to expand some of its South African production to India, largely to produce its drug for the parasitic disease limphatic filariasis, which is prevalent in India.

Decisions like these, he said, were based on cost competitiveness which includes, apart from the cost of electricity, logistics, labour and commodity costs. South Africa remains competitive for now, and the company will expand here this year.

But GSK was warning that the country would not remain competitive with escalating electricity costs.

read more.


Black bankers score big from empowerment deals

Combined profit is R17-billion, mainly due to luck with the timing of the deals

Black South African bankers are making a fortune out of the empowerment deals concluded by banks in terms of the financial sector charter.

Banknotes calculates that the big four banks' empowerment deals have netted participants a combined profit of R17-billion. And that's real wealth, unencumbered by debt.

The performance is thanks largely to luck in timing - most deals were done in 2004 and 2005 just as bank shares were getting into a bullish stride.

Standard Bank

Best off are those who invested in the Standard Bank empowerment deal. Thanks to the performance of Standard Bank's share price and the generous financing terms for the deal, the beneficiaries are currently sitting in a profit position of more than R6-billion.

That was helped by Standard Bank's tie-up with the Industrial and Commercial Bank of China, which bought shares at a generous R136 in 2007, a price they have never reached on the JSE.

read more.

4 Opinion(s):

Anonymous said...

Eish! It's hud to be bleck in the new sef efrica!

Pensioner said...

Who the hell is going to pay for this Maroga court case? The consumer, by adding an extra 5% to the 35% increase in electricity costs? Somebody should take this idiot somewhere behind a power station and beat the snot out of him. For fuck sake, he was FIRED for INCOMPETENCE! When will these idiots get the message that just because you are black, that doesn't give you the right to stay in a job for which you are obviously not suited or qualified, just because some of the BROTHERS thought it was a good idea at the time.

Pensioner said...

Did anyone see the piece on BEE on Carte Blanche last night. Blacks brought in from all over the world, including the US and they haven't done a days work yet. The camera went through an open plan office in Megawatt Park and all the workstations were empty, there was no one there. So much for the legacy of Maroga.

Dachshund said...

Why don't they just give him a power station?