SANRAL EXECS PROSPER WHILE THE COMPANY LOSES (R2,7 billion)

BY THANDI SKADE | October 10, 2014                                                                                                                                   

Top South African Roads Agency Limited (Sanral) executives received an average 17% pay hike in the year ending 31 March

Despite recording R2,7 billion losses for the financial year, Sanral paid its executives millions of rands in additional benefits and bonuses that were significantly higher than inflation, the average increase for civil servants and the economy.

The shocking data, which reveals that the executives were paid on average 17% more than the previous year, is contained in Sanral’s annual report released on Wednesday, Moneyweb reports.                                                                                                                                   Sanral CEO Nazir Alli

The increases have raised eyebrows among the general public and commentators who have noted the precarious timing amid suspended bond auctions and a sharp decline in investor confidence largely sparked by the uncertainty surrounding the implementation of Gauteng’s e-tolls.

Inge Mulder, Sanral’s CFO, previously blamed the mega loses on delays in implementing the multi-billion-rand project.

According to the Moneyweb report, Sanral CEO Nazir Alli took home a total of R3,6 million for the year, consisting of a R2-million salary, long service award and performance payments of R1 million, travel allowance and medical benefits of R106 000 and R381 000 towards pension contributions, making his total remuneration 17,9% higher than the previous year.

Engineering executive Koos Smit, the second-highest-paid executive, earned a total package of R2,4 million – including a salary just under R1,5 million, R558 000 bonus for performance and long service and R306 000 in pension contributions – up from R2,1 million in the previous financial year.

Mulder took home R2,1 million, rising from R1,8 million the year before.

Categories that recorded the greatest increases on average were performance payments and long service at around 38%, executive salaries, excluding Alli’s, increased by around 11,9%, travel allowance and medical benefits at around 13,5% and pension contributions by 11,5%.

Economist Mike Schussler told the website that the average increase for civil servants hovered around 8% for the same period.

While inflated increases are not uncommon among state-owned companies, agencies and private corporations, Schussler suggests that all public institution employees “should limit their increases to below 10%”.