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According to the data revealed by Mantashe, most SOE executives in this sector earn between R2.4 million and R6.1 million annually.
Minister of Mineral and Petroleum Resources Gwede Mantashe. Picture: Gallo Images/Jeffrey Abrahams
The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has disclosed detailed information about the remuneration packages of chief executives across state-owned enterprises (SOEs) that fall under his department.
The disclosure came in response to a parliamentary question from DA MP Mergan Chetty, who requested comprehensive details about executive compensation at these entities.
Mantashe reveals CEF group executives among highest paid
According to Mantashe’s response, the Central Energy Fund SOE (CEF) Chief Executive Officer, Ishmael Poolo, receives the highest remuneration package among the SOEs, totaling R6 147 526.77 annually.
The CEO also received a performance bonus of R2 839 005.15 for the 2023-24 financial year.
“The remuneration package for the CEF CEO is aligned with the Department of Public Service and Administration’s remuneration guidelines,” Mantashe stated in his parliamentary response.
The CEF group posted a net loss of R522.1 million in the 2023-24 financial year. Despite the overall loss, its revenue increased slightly to R29. billion, up from R28.3 billion in 2023.
Despite this, CEF itself recorded a net profit of R126.7 million
PetroSA has second second-highest-paid CEO
Following closely behind is PetroSA’s CEO with an annual package of R5,808,930.04.
Xolile Sizani, was suspended by the SOE’s board last year.
His suspension came just six months after his appointment. PetroSA appointed Mmete Fusi as the acting group CEO following Sizani’s suspension.
However, the current acting CEO of PetroSA is Sesakho Magadla.
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Magadla is also the Strategic Fuel Fund (SFF) CEO and earns R5 768 294.77. She received a performance bonus of R2 376 425.74 for the 2024-25 financial year under this entity.
The CEF group’s 2023-24 annual report revealed that PetroSA recorded a net loss of R2.2 billion. This was lower than the budgeted net profit of R2.6 billion. The report attributed the negative return to gross profits being lower than budgeted.
Simultaneously, the SFF Group reported a net loss of R313 million in the same financial year, while SFF itself posted a net loss of R286 million.
The company said it would have ended the year in a profitable position had it not paid R2 billion to National Treasury.
The payment was “a partial settlement of the R6 billion owed to offset the deficit related to the fuel levy relief granted to consumers in April 2022”.
Petroleum agency and mining research executives
The Petroleum Agency South Africa’s (Pasa) interim chief executive, Tshepo Mokoka, earns R5 092 487 annually and received a bonus of R485 530.58 for the 2023-24 financial year, according to the ministerial response.
Pasa recorded a net profit of R6.6 million.
Mosa Mabuza, the CEO of Council for Geoscience, receives R4 704 434.52, with a basic salary of R4 261 303.77.
According to Mantashe, Mabuza has additional benefits, including provident fund contributions of R259 133.28.
The executive received performance bonuses of R467 808.61 and R405 733.65 for the 2023-24 and 2024-25 financial years, respectively.
Dr Molefi Motuku, Mintek’s chief executive, receives a total compensation package of R4 582 495 and was awarded performance bonuses of R180 077 for 2023-24 and R371 168 for 2024-25.
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African exploration mining and diamond trading executives
African Exploration Mining and Finance Corporation (AEMFC) CEO Lemogang Pitsoe earns an annual package of R4 449 217.44, with Mantashe noting that no performance bonuses were applicable for either financial year.
South African Diamond and Precious Metals Regulator’s CEO, Cecil Khoza, receives R2 834 828 annually, with a basic salary of R1 700 897.
Khoza received a performance bonus of R101 763 for the 2023-24 financial year.
“All these remuneration packages are aligned with DPSA remuneration guidelines,” Mantashe emphasised throughout his response.
Lower-tier SOE compensations
At the lower end of the compensation spectrum, the Mine Health and Safety Council CEO, David Mamphitha, receives R2 756 532.60 annually, with a basic salary of R2 367 639.72.
Mamphitha’s additional benefits include a cellphone allowance of R25 416 and a group life benefit of R63 476.88.
He received a performance bonus of R220 324.81 for 2023-24.
Meanwhile, the State Diamond Trader’s chief executive, Nosiphiwo Mzamo, receives R2 438 522 annually with a basic salary of R2 269 812.
Mzamo’s benefits include R138 826 for the annual provident fund and R29 884 for medical aid contributions.
Mantashe revealed that Alexkor SOC Limited’s CEO, Lemogang Pitsoe, earns the lowest amount among the SOEs, with a total annual remuneration of R933 926.51, calculated at R4 888 per day.
The minister noted this package falls “below the DPSA remuneration guidelines”, while all others are either aligned with or within the prescribed limits.
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Transparency in executive compensation
When asked about the performance metrics tied to these compensation packages, Mantashe’s response focused primarily on the numerical figures rather than performance indicators.
The minister simply noted whether each package aligned with government guidelines.
According to the data revealed by Mantashe, while most SOE executives in this sector earn between R2.4 million and R6.1 million annually, their compensation structures and bonus allocations vary considerably.
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