The Democratic Alliance slams sky-high executive salaries as South African state-owned enterprises drain public funds despite crumbling services
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The Democratic Alliance slams sky-high executive salaries as South African state-owned enterprises drain public funds despite crumbling services

In a country where power cuts, water shortages, and crumbling public transport have become part of daily life, you’d expect government-run entities to be tightening their belts.

But according to South Africa’s Democratic Alliance (DA), it’s quite the opposite – and people are fed up.

The opposition party has called out what it sees as completely over-the-top executive pay in the country’s state-owned enterprises (SOEs), even as these organisations depend on massive bailouts and continue to underperform.

Their demand? Immediate accountability and a complete reset of how public funds are spent on top brass salaries.

R400 Million Spent While Services Collapse

Recent data, drawn from parliamentary responses and public salary disclosures, has revealed that over R400 million is spent annually on executive salaries across various SOEs.

And this staggering number comes despite many of these organisations receiving government bailouts and producing terrible audit results.

Worse still, some of these salaries go way beyond the national guidelines set by the Department of Public Service and Administration (DPSA).

According to the DA, it’s a clear sign that the system is broken.

“This reflects a broken system with weak oversight and eroded public accountability,” the party said bluntly.

Who’s Getting Paid the Big Bucks?

The DA didn’t hold back on naming names.

Here are a few examples they highlighted:

  • Development Bank of South Africa (DBSA) CEO earns R15.5 million annually – one of the highest-paid public servants in the country.

  • Transnet’s CEO takes home R8.5 million, despite ongoing port problems and a R47 billion bailout in 2023.

  • PRASA’s (Passenger Rail Agency) CEO gets R7.8 million, even with failing infrastructure and shaky audits.

  • Road Accident Fund (RAF) CEO earns R7.1 million, while the fund itself is technically bankrupt.

Other entities on the list include:

  • CSIR: R6.92 million

  • SAA: R6 million

  • PetroSA: R5.8 million

  • Rand Water: R5.4 million

Many of these organisations are struggling to fulfill their basic mandates — and yet, their executives continue to cash in.

Public Funds, Private Gains?

For the DA, this isn’t just about the numbers. It’s about the message it sends to everyday South Africans who are left waiting for buses that never come or water that never flows.

The party warned that this kind of excessive executive spending not only undermines public confidence but also siphons resources away from actual service delivery.

And here’s the kicker — only 13 out of 40 national departments have reported their figures so far.

The real total could be much higher.

“If this is what’s happening at the top, what’s going on in the rest of the system?” the DA asked.

The DA Wants Rules – And Fast

To fix what they call a culture of “excess and impunity”, the DA is pushing for three big changes:

  1. A standardised pay structure across all SOEs.

  2. Public explanations for any salaries that go beyond the DPSA’s guidelines.

  3. Stronger parliamentary oversight to make sure public money is used responsibly.

In their view, SOE salaries should be tied to real performance, especially in entities that rely on state handouts or consistently fail to deliver results.

A Slap in the Face to Ordinary South Africans

The DA’s strongest words were reserved for the public impact of all this.

They called the executive pay levels “unjustifiable and offensive” — particularly when most citizens are dealing with failing trains, unreliable electricity, and worsening water outages.

They added, “The South African public deserves competent and ethical service delivery.

These excessive salaries are an affront to the millions who rely on basic services that are consistently failing.”

What Happens Now?

The DA says it’s not letting this go.

They’ve promised to keep pushing for change in Parliament and to continue exposing inflated pay packages in the public sector.

So…

do you agree with them? Is this just the cost of attracting talent, or is it another sign of misplaced priorities in a country already struggling to keep its public services running?

One thing’s for sure — with more salary data still to be released, this debate is far from over.