KwaZulu-Natal growth fund's chief executive officer Dominic du Plessis has been asked to return his R375 000 performance bonus.

This, with the fund R80-million in the red, economic development MEC Mike Mabuyakhulu said on Tuesday.

"The CEO would have to enter in an agreement with the board on the terms of this repayment. I don't expect him to pay the lump sum," said Mabuyakhulu.

The government wanted to set a principle where bonuses were concerned, he said.

The growth fund controls more than R900-million earmarked for projects which promise to trigger economic activity, but was recently found to have lost millions on a few unsuccessful projects.

Despite this, the chief executive officer was getting a performance bonus and some fund managers had received huge salary increases.

Set up a remuneration policy

While nothing could be done to recover the salary overpayments, there were measurement tools and key performance areas when it came to bonuses, he said.

"The performance by the CEO did not necessitate the payment of a performance bonus."

Mabuyakhulu said his department intended setting up a remuneration committee made up of board members and outsiders.

"We want to set up a proper remuneration policy, go around the country and have a survey.

"We will also look at the conditions within the fund in line with what is happening in the markets, but we will do so bearing in mind that this is a public entity," he said.

Mabuyakhulu said nothing could be done to recover the overpayments already made.

Du Plessis was not immediately available to comment.

Sapa

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