Wed, 30 Sep 2020

Necsa staff to get salaries on Friday

24 Jan 2020, 16:14 GMT+10

The Nuclear Energy Corporation of South Africa's told Fin24 that its staff would receive salaries for the month of January on Friday.

The troubled state-owned nuclear corporation has faced numerous financial and operational challenges, including the recent resignation of its remaining former board members, and the possibility of salaries not being paid on time.

Minister of Mineral Resources and Energy Gwede Mantashe announced the appointment of a new board on Tuesday, which was roundly welcomed by various industry members, unions and Members of Parliament.

Necsa confirmed to Fin24 on Monday that it was working with the department to ensure salaries would be paid for January. However, while the hurdle of salaries has been cleared, employment benefits have proved a challenge for the company to cover.

The National Education Health and Allied Workers Union told Fin24 that according to branch leadership, Necsa was redirecting finances from various areas to ensure enough remained for salaries and employment benefits.

"All the money was sourced internally from prioritising spending, income from services to Necsa subsidiaries, decontamination and decommissioning work," said a response from Nehawu to questions from Fin24 via WhatsApp.

'Another chance': MPs, industry welcome new Necsa board

Nehawu spokesperson Khaya Xaba told Fin24 that he understood salaries would be paid to Necsa employees, but said the corporation was still in the process of facilitating the payment of other employee benefits.

"The money needed to pay salaries for a month is R44m, but it doesn't count benefits. They have paid salaries so far. They have made a commitment to honour the payments," said Xaba.

Necsa spokesperson Nikelwa Tengimfene told Fin24 that the corporation would be able to pay its staff salaries on Friday and that it was on track to make the necessary payments for employee benefits thereafter.

"Salaries will be paid during the month. Nothing has changed since Monday. But salaries will be paid on time as committed to by the company.

"You pay service providers related to the service that they offer at a different time than you pay salaries. Those payments are only due later in the month and earlier in the following month," said Tengimfene.

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