Dear Editor
The DA has begun a process of assessing the remuneration terms and conditions of board members and Chief Executive Officers (CEOs) across KwaZulu-Natal’s (KZN) 12 Economic Development, Tourism and Environmental Affairs (EDTEA) entities.
The move comes after a recent parliamentary reply (view here) to questions by the DA exposed that during the 2024/25 financial year;
- A staggering R30 278 253 was spent on CEO remuneration, equating to an estimated annual income of R2.5 million per CEO
- R 6 699 985 was spent on board chairpersons and;
- R 4 458 762 was spent on deputy chairpersons.
The reply further reveals that the annual remuneration excludes fees paid to chairpersons, deputies and ordinary board members to attend meetings. Nor does it include retainer fees.
Of particular concern is that there does not appear to be a transparent or publicly available framework outlining how these remuneration packages are determined – whether on the basis of performance, market benchmarking or service delivery outcomes.
Given this, the DA has submitted written follow-up questions to EDTEA MEC, Reverend Musa Zondi, to determine what, if any regulations, were used to determine the remuneration of entity boards and CEO members. While their roles and responsibilities may be significant, the absence of clear criteria leaves the efficacy of these boards in question. It also undermines public trust in these entities and speaks to a lack of accountability.
The DA believes that any remuneration at this level must be justified, transparent and tied directly to outcomes that benefit KZN’s people, particularly given the sky-rocketing unemployment rate which, according to StatsSA, was an expanded rate of 44.7% in December 2024.
KZN EDTEA’s mandate is to oversee socio-economic transformation, drive economic growth and promote environmental sustainability in our province. Given the budgetary constraints faced by EDTEA and its entities, it would make sense to prioritise spending where it has the most impact. Spending millions of rands on boards and CEOs, particularly given the questions around their efficacy, does not appear to be prudent.
The DA, as a solid partner within KZN’s Government of Provincial Unity (GPU), will continue to push for full disclosure, a review of benchmarks, and alignment of executive pay with the urgent need to deliver on economic development, job creation, and effective governance.
Regards
Hannah Lidgett, MPL
DA KZN Spokesperson on EDTEA