Eskom: A crisis shrouded in secrecy

Note to editors: The following speech is to be delivered today in Parliament by the DA's Shadow Minister of Public Enterprises, Natasha Michael MP, and is currently under embargo until delivery. Please check against delivery. 

27 November 2014

Honourable Speaker

We return to the House today as representatives of a country in the midst of a debilitating national crisis. 

A crisis that is grinding our economy down to a halt. 

A crisis that has been shrouded in mystery. 

A crisis that has been downplayed by the ANC time and time again.

A crisis for which we have many more questions than answers.

Yesterday, when we called for this debate, news broke of Eskom's collapsing profits for this year - down 24% from last year.

As a Member of Parliament, I asked myself: So what now? What is going on at Eskom, and what do we need to do to fix it? How can I make a difference?

And the reality is that I have very few of those answers. The fact of the matter is honourable Speaker; no one here knows what is going on at Eskom; with the exception of one individual: Minister Lynne Brown.

Honourable members, the DA's tried to get the information out of Minister Brown.

On 4 Novemebr, I wrote to the Portfolio Committee on Public Enterprise chairperson, Ms Dipuo Letsatsi-Duba, asking for an oversight visit to Majuba power station. No response was received.

I have submitted Parliamentary questions. No response.

In the past, we have submitted PAIA applications, to get to the bottom of what is going on at Medupi and Kusile. In response the Public Enterprises department has done everything possible to stop us from seeing the full contracts. 

On 3 November, I wrote to Minister Brown, asking for a full maintenance plan of Eskom's power stations. There was no real response. 

The Minister's only response to me has been an open letter dated 6 November. In it, Minister Brown promises, and I quote: "If you want more information on the timeline for maintenance of power stations, I am quite happy you receive this."

Delighted by this new embrace of openness by the Minister, I wrote back asking for the maintenance records at Majuba power station amongst other things, and nothing has been forthcoming.

Minister Brown, we are in the middle of a real crisis under your watch. Eskom's infrastructure is falling apart. It can't keep the lights on. Its profitability is collapsing. It needs billions in bailouts and no one really knows what is going on.

So Minister Brown, I would like to place it on record, in full view of the House, the national media and the public: Please follow through on your promise and provide us with the maintenance records for all Eskom power stations. 

We need to know how bad things really are.

You cannot expect Parliament to sit idly by as Eskom continues to drag our economy down.

We can't approve budgets, do oversight and plan for the future of Eskom without knowing the full picture of the situation at Eskom.

Just this morning, there are more allegations of a power station on the verge of collapse at Lethabo power station in the Vaal triangle. Can the minister today, on record, please provide us with feedback on what is going on at Lethabo power station? Minister Brown, is this going to be another Majuba? If so, must we not now warn the South African people of the coming blackouts? Reports are already suggesting that two of the power station's six reactors are down?

Can you provide clarity?

Eskom's own CEO has said that the entity is "living on the edge". Where's the plan to fix it?

This week Minister Brown also said that she is privy to a turnaround plan for Eskom. Well, at this stage, it is a secret plan, because yet again nothing has been reported to Parliament. 

I would wager that in fact there is no plan, no details, no substance to this claim. Again, Minister Brown and the ANC government are on the back foot and responding to a crisis. Why is it that we cannot plan ahead and avoid these crises before they happen?

It comes as no surprise that Eskom management and Minister Brown are so evasive on the issue. The true nature of the situation, I am sad to say, would be deeply embarrassing to the Minister.

And of course there is no escaping the fact that government's inability to plan out our energy needs properly is today actively contributing to poverty and unemployment in South Africa.

Honourable Speaker,

Serious questions therefore remain unanswered:

1. How long can we expect load shedding to last and what are the plans to mitigate the negative effect that this load shedding has?

2. What is the true nature of the problems at Majuba and all other power stations?

3. Where are the maintenance logs for all the power stations?

4.Why can't the portfolio committee go to Majuba and Lethabo?

5. Will the Medupi power station meet its December 24 deadline for the initial turn on or will this deadline be extended for the umpteenth time?

6. Will the DA finally be given full access to all the contracts at the Medupi power station, as per our PAIA application?

7. Did the minister request Eskom's R63 million sponsorship of the New Age Newspaper Business Breakfast to be reversed?

8. Will the minister agree to a departmental freeze of executive pay at Eskom, currently totalling in excess of R60 million per year?

9. Why is the ISMO bill still stalled?

Time and time again, Minister Brown has evaded these questions. 

I see on the schedule for the debate today, Minister Brown has an extensive speaking opportunity a bit later. 

Minister Brown, in the interest of openness and transparency, please account to Parliament on all of these important matters in your contribution to this debate.

You have been missing in action until now. Please come forward and do your job. We can't allow this crisis to continue dragging the country down without answers from you. I, together with the country, eagerly await your answers.

I thank you

Issued by the DA, November 27 2014

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