Source: Republic of South Africa: The Parliament |

South Africa: Eskom Briefs Energy and Public Enterprises Committees

The committees said they are pleased that McKinsey paid back the money to the power utility as this was an issue that came out during the Eskom Inquiry

PRETORIA, South Africa, August 29, 2018/APO Group/ --

The Portfolio Committees on Energy and Public Enterprises held a joint meeting today. The Committees were briefed by Eskom on its challenges, received an update on the status of the coal power stations and the company’s key performance targets for 2018/19.

Briefing the committee, Eskom Chief Executive Officer, Mr Phakamani Hadebe, said the power utility has investigated all irregular supplier contracts (so far five are no longer doing business with Eskom and the amount spent with these companies in the past three years was R2.3 billion). The power utility has recovered R1 billion from McKinsey, including interest.

The committees said they are pleased that McKinsey paid back the money to the power utility as this was an issue that came out during the Eskom Inquiry.

The committees wanted an update on the process of appointing a CFO (Chief Financial Officer). Eskom said the appointment of a CFO is ongoing. Eskom gave an undertaking that the process will be concluded by the end of September.

On the issue regarding the industrial action by Eskom employees, the committees said the power utility should not bow down to the demand from the unions as there were criminal elements during the strike. The unions said their members should not go through a disciplinary process after embarking on an illegal strike. The committees condemned that demand and said employees alleged to be implicated in criminal actions during the strike should go through the necessary disciplinary process and the law needs take its course from the law enforcement agencies.

The committees proposed that the committees should be briefed by law enforcement agencies to get an update on the investigation.

The committee questioned how the wage bill will be dealt with as media reports by Eskom stated that the company has 33% employees which is more than what is required. The committee asked how the power utility will trim the wage bill and if the company intends to reduce its staff component.

The Chairperson of the board, Mr Mr Jabu Mabuza, said: “Eskom is over-staffed at all levels, but we are not sure whether we will downsize but the company will rightsize. All this will be done following the labour laws, it will be inappropriate to inform the committees in this public platform what will be done as there are consultations that need to be done and to follow proper due processes.”

Municipal debt is an issue that Eskom should handle in a better manner, the committees were of the view that Eskom cannot handle the municipalities in a blanket approach. The committees suggested that Eskom needs to categorise municipalities and look into the ones that can afford to pay and those that are struggling.

The committees were in agreement with Minister of Public Enterprises, Mr Pravin Gordhan, who said there is commitment and dedication in getting Eskom to a different path and repositioning the business.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.