Tag: Eskom

When Mosilo Mothepu was appointed CEO of Trillian Financial Advisory, a subsidiary of Gupta-linked Trillian Capital Partners, in March 2016, the prospect of being at the helm of a black-owned financial consultancy was electrifying for a black woman whose twin passions were transformation and empowering women.

President Cyril Ramaphosa recently told the World Economic Forum he intended to break up Eskom’s monopoly over energy. Eskom’s reputation, around the world is one of corruption and mismanagement, so something must be done.

Government's first duty is to protect the rights of citizens. Instead, ours has prioritised yet another bailout of R10.5 billion for the failed South African Airways (SAA), with a further R6.5 billion in the pipeline. This while citizens die in hospitals lacking basic personal protective equipment, staff and oxygen supplies, and there remains no vaccine on the horizon.

As Eskom carries out critical maintenance on its failing units, South African landlords and facilities managers have to implement measures of their own to ensure energy security for their properties. There certainly appears to be no foreseeable end to the current load shedding, and facilities managers now have to factor in rolling blackouts as part of the daily management equation.

Sparking an immediate celebration in the rand and bond markets, the 2020 Budget Speech ticked all the right boxes for markets, depicting a government that is reform-minded and ready to show its muscles.

As most South Africans eagerly awaited some reprieve from a year of constant and negative bombardment, be this over matters such as a massively contracted economy, rising unemployment, state capture, rising corruption and the threat of expropriation of property without compensation, many had hoped to return from their annual vacation rested, and hopeful to hear some positive news. This did not happen.

Government intervention in the economy simply does not work. It is a mystery, then, why so many otherwise intelligent people keep calling for more of the same. After years of low growth (12 years now) concurrent with government fiscal deficits and various stimulus packages, we are now faced with retrenchments across the economy. The latest of which is Massmart announcing that it is considering retrenching 1,400 people.

Eskom has one and SAA is looking for one. And as South African State Owned Enterprises (SEOs) and private sector companies continue to suffer from an ailing economy, there is no doubt that the role of Chief Restructuring Officer (CRO) is catching on. 

Labour unions are undoubtedly the biggest obstacle to any positive reform, not because this particular group of individuals is somehow more evil than the rest of us. It is simply a rational response to the particular set of incentives that union bosses are faced with.

In the first quarter of the year, Eskom and the government committed to developing a workable strategy to stabilise the national grid as capacity is ramped up and maintenance is scheduled. Following a briefing by deputy president David Mabuza on events at the national utility and electricity constraints, a Technical Review Panel appointed by the Eskom board and Public Enterprises Minister Pravin Gordhan promised a plan by April.