Gauteng premier Nomvula Mokonyane’s spokesman would not be drawn on Wednesday on a Democratic Alliance complaint that board members of the Blue IQ economic development agency were earning “excessive” fees.
“We are busy restructuring all the agencies of Gauteng so that we can have a few agencies that are within the mandate of this government,” her spokesman Dumisani Zulu said.
He would not comment on the issue of the salaries, but said the reason for the restructuring was to save the money that “props up or runs” these agencies.
In response to questions put to the economic development MEC Firoz Cachalia, DA MP Jack Bloom found out that the chairman of Blue IQ received R25 000 a meeting, and ordinary board members got R20 000 a meeting.
The highest paid member was Noedine Isaacs-Mpulo, who earned R901 000 last year as chairwoman of Blue IQ and five other agencies of the department. At the same time, she was CEO of Lefatshe Technologies, Bloom said.
Younaid Wada got R724 000 last year and Johnny Sexwale got R493 000.
Bloom said Cachalia had said the Blue IQ board members were paid in accordance with their letters of appointment dated 30 January 2009.
He had requested a review of the levels of remuneration and a “downward revision” because they had demonstrated a “significant lack of good corporate governance”.
Bloom said a board member at a state owned enterprise like Eskom receives total fees per annum of R477 815. On average, chairs of boards of private sector companies receive a payment of R834 000/year and board members get R362 000.
“With regard to the two board members who were paid despite being employed in other government entities, which is contrary to a national treasury directive, Cachalia said that about R700 000 had been overpaid to them, but it was not clear that this could be legally recovered although he regarded it as ‘completely improper’,” said Bloom, who found the fees “outrageous”. — Sapa