To What Lengths Will South African Govt Go To Save Eskom?
Embattled South African power utility Eskom, has been at the centre of the country's economic woes for a number of years, where it has been struggling to keep the lights on for both businesses and households. The utility now finds itself in debt to the tune of U.S.$32 billion (R480 billion). Added to its woes over the years, were the position of CEO that became somewhat of a revolving door. Coupled with that has been the utility's mismanagement, where billions in government funds have been misused, or syphoned off through corruption. Testimony on corruption at the utility has been heard at the Zondo Commission of inquiry into state capture. Now this week, a firm ABB South Africa, has reimbursed Eskom U.S$112,5 million for an overpayment for services rendered by the firm. In a statement released by the South African government, the Department of Public Enterprises Minister Pravin Gordhan and the Eskom CEO Andre De Ruyter, welcomed the repayment, explaining that it was for work done at the Kusile Power Station in 2015. "It is a "crucial milestone in the fight against corruption and state capture", they added. In the meantime, Eskom's fight to keep the lights on continues, as it faces the challenge of ageing infrastructure and millions still outstanding by non-paying residents in some areas in the country. Included in the government restructure of Eskom, Ruan Jooste writes for Daily Maverick that either the state puts pensioners' retirement savings on the line, or a critical state utility faces the prospect of failure.
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South Africa:
Public Enterprises Welcomes R1.56 Billion Recovery From ABB South Africa
Govt of SA, 14 December 2020
The Department of Public Enterprises welcomes the recovery of R1.56 billion from ABB South Africa, after Eskom and the Special Investigating Unit (SIU) reached an agreement with… Read more »
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South Africa:
How Eskom Board Whisked Through a R1.68 Billion Agreement That Benefited the Guptas
Daily Maverick, 7 December 2020
In December 2015, the Eskom board agreed to prepay Optimum Coal R1.68bn to ensure power stations could keep the lights on, but the deal was structured to benefit the Guptas'… Read more »
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South Africa:
Eskom's Debt Is a Double-Edged Sword
Daily Maverick, 9 December 2020
The dilemma surrounding the government's bid to restructure Eskom: Either the state puts pensioners' retirement savings on the line, or a critical state utility faces the prospect… Read more »
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South Africa:
Public Enterprises Welcomes Eskom's Recovery of Over R1.56bn
SAnews.gov.za, 14 December 2020
The Department of Public Enterprises (DPE) said it was pleased about the recovery of R1.56 billion from ABB South Africa back into Eskom's coffers. Read more »
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South Africa:
Committee Chairperson Welcomes Agreement Reached With ABB South Africa and Eskom
Parliament of South Africa, 14 December 2020
The Chairperson of the Portfolio Committee on Public Enterprises, Mr Khaya Magaxa, has welcomed the agreement reached between ABB South Africa and Eskom. This comes after an… Read more »
InFocus
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Taking over U.S.$16 billion out of the U.S.$119 billion worth of pension savings belonging to 1.7 million current and retired government employees, amounts to a big 13.8% haircut Read more »
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Power utility Eskom has said that units being out of service at two of its power stations, and the breakdowns of units at three facilities resulted in the need for scheduled power ... Read more »
Beaufort West, Western Cape province: Electricity pylons.