While thousands of Eastern Cape residents face unemployment and worsening poverty, executives at state-owned entities (SOEs) under the Department of Economic Development are pocketing millions in salaries and perks. These excessive packages are being funded by the very taxpayers struggling to make ends meet.
The Democratic Alliance (DA) condemns this blatant misalignment of priorities. We believe that public funds should be directed towards expanding opportunities and uplifting communities, rather than enriching a politically connected few.
Eastern Cape Premier Oscar Mabuyane needs to halt the gravy train and fulfil his promise to rationalise these entities. He needs to shut down these bloated, inefficient, revenue-draining entities that add no value to the province
Detailed responses to parliamentary questions from the DA reveal that in the 2023/24 financial year alone:
• The Coega Development Corporation CEO earned R5.3 million, including over R1 million in non-cash perks;
• The Eastern Cape Gambling Board CEO earned R4.8 million, with a R625 000 performance bonus;
• The Eastern Cape Parks and Tourism Agency CEO received R2.9 million, which included a R198 000 bonus;
• The Eastern Cape Development Corporation CEO was paid R3.4 million, without any performance bonus or perks.
The Coega CEO earned over a million rand more than the President of South Africa in the 2023/24 financial year. That single executive package of R5.3 million could have funded close to 150 full-time EPWP jobs for a year, or provided over a million meals to learners through the national school nutrition programme.
What also stands out from the reports is that the ECDC CEO got a pay increase of 41.2% between the 21/22 and 22/23 financial years, jumping from R2.34 million to R3.305 million, while the ECDC Chief Financial Officer’s pay jumped from R1.247 million in 22/23 to R2.193 million in 23/24, a staggering 75.86% increase.
Download responses here, here, here, here and here.
What is clear is a pattern of excessive executive compensation despite persistent joblessness and economic exclusion in the province.
This pattern reflects a systemic failure to link executive pay to tangible developmental outcomes. High salaries are often justified by performance KPIs audited internally.
The DA believes that the rationalisation of provincially owned entities can put the Eastern Cape on a more stable and prosperous path. I have written to Premier Mabuyane to request that he review the recommendations made through SCOPA and begin the rationalisation of these entities.
Download letter.
It is no secret that the bulk of the Eastern Cape’s provincial entities are a drain on the public purse, while offering little to no return for the funds they receive
People in the Eastern Cape are not seeing the benefits of these inflated executive packages. Every rand misallocated to excessive remuneration is a rand not spent on infrastructure, skills training, or enterprise support. It is time to restore balance.
The people of the Eastern Cape deserve leadership that delivers, and a future built on dignity, opportunity and honest government.