R400m and counting: public sector bosses cash in as SOEs flounder
Portgieter said more than R400m is spent annually on executive salaries across 117 entities and likely more across the full landscape of nearly 700 state-owned enterprises (SOEs).
The DA highlighted entities including: Transnet, where the CEO earns R8.5m despite operational failures and a R47bn bailout;
The Passenger Rail Agency of South Africa paying its CEO R7.8m amid audit disclaimers and service collapse;
paying its CEO R7.8m amid audit disclaimers and service collapse; The Road Accident Fund, where the CEO earns R7.1m even though the fund is technically insolvent;
Rand Water, where ongoing service delivery failures contrast with the CEO's R5.4m remuneration.
'This reflects a broken system with weak oversight and eroded public accountability,' said Potgieter.
The party called on the public service and administration minister to establish a standardised executive remuneration framework for public entities, enforce mandatory disclosure and justification when salary norms are exceeded and work with parliament on systemic governance reforms in line with public service principles.
'The excessive salaries remain not only unjustifiable but an affront to the millions of South Africans who rely on basic services that are consistently failing,' she said. This comes after a parliamentary reply shed light on the multi-million rand remuneration packages received by CEOs and top executives at SOEs and financial institutions.
DA MP Jan Naudé de Villiers asked the finance minister to provide full details for the total remuneration, benefits and bonuses of CEOs and the most senior officials at state-owned and state-linked entities reporting to him.
In his response the minister revealed total pay, benefits and performance bonuses of senior officials in public finance institutions such as the Development Bank of Southern Africa, the South African Revenue Service, the Financial Sector Conduct Authority and the Financial Services Providers (FAIS) ombud.
He also revealed many operate outside the salary guidelines set by the department of public service and administration.
The annual remuneration report from the 2023/24 office of the FAIS ombud showed five top executives earned a combined total of more than R9.5m.
The highest-paid executive was CFO Shaun Maharaj, who earned a total package of R2.4m in 2023/24, including a base salary of R1.89m, a performance bonus of nearly R100,000 and other benefits.
Ombud John Simpson earned R2.3m despite receiving no pension contribution or performance bonus.
In the 2024/25 financial year, Maharaj's package increased to R2.7m including a performance bonus of more than R319,000 while Simpson's total package rose modestly to R2.5m.
In his response the finance minister highlighted that the FAIS ombud does not follow department of public service and administration salary scales.
'The office operates in a highly specialised industry with a unique structure. Market remuneration benchmark survey data is used to determine internal pay scales using the Hay grading system.'
The Development Bank of Southern Africa stood out as the highest payer with its CEO earning R10.5m in 2023/24, an amount that jumped to R15.5m in 2024/25. This includes guaranteed pay, allowances, benefits and variable pay.
The minister confirmed bank is not governed by department of public service and administration remuneration limits.
At the Financial Sector Conduct Authority, the commissioner earns a cost-to-company salary of R5.8mn which includes a monthly employer retirement fund contribution of R47,774 and he does not receive a bonus. The authority also falls outside of department of public service and administration control.
'Authority remuneration is cost-to-employer. There are no allowances and the bonus plan does not apply to the commissioner,' said the minister.
The Government Employees Pension Fund pays its principal executive officer a base salary of R4m with additional allowances and retirement contributions bringing the total to R6.7m.
For the 2023/24 financial year the executive also received short- and long-term incentive bonuses totalling R3.2m, pushing the overall remuneration above R9m.
The minister said the fund also does not follow department of public service and administration remuneration rules, instead benchmarking against private sector norms.
The Revenue Service commissioner received a guaranteed package of R8.2m with a R2m performance bonus paid in 2024/25 for the previous year's performance. A bonus of R2.4m was paid the year before.
The minister said the service is governed by its own legislation and is not subject to the department of public service and administration guidelines.
Several other state-linked entities also reported significant pay packages: C+South African Special Risks Insurance Association CEO: R4.6m basic salary and R1.8m bonus in 2023/24.
Financial Intelligence Centre director: R3.6m package, no bonuses.
Independent Regulatory Board for Auditors CEO: R4.78m.
Land Bank CEO: R4.94m, with additional cellphone and petrol allowances. No bonuses paid yet for 2024/25.
Ombud Council chief ombud: R2.93m salary plus R28,000 bonus in 2023/24.
Entities which did report compliance with department of public service and administration guidelines are the Government Technical Advisory Centre, where the acting head earns R1.9m, and the government Pension Administration Agency, where the CEO earned R2.2m with no bonuses.
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