DA requests for Eskom to present leaked turnaround strategy to Parliament
26 August 2019
The Democratic Alliance (DA) has written to the Chairperson of the Portfolio Committee on Public Enterprises, Khaya Magaxa, to request that Eskom present a detailed report to Parliament on its turnaround strategy. Reports today indicate that an internal presentation by Eskom CEO, Jabu Mabuza, on the utility’s turnaround strategy has been leaked to the media.
While it is commendable that Eskom is beginning to seek solutions to its infinite number of woes, it cannot hope to do so without including Parliament as an oversight body in such a process. It is for this reason that the DA has requested the utility present this strategy to Parliament.
The leaked document reportedly details a number of strategies in order to get the utility back on its feet. Of particular concern is the purported debt restructuring of R130 billion over the next 3 years through government, accompanied with long-term debt restructuring; as well as the reported revenue management, outlining the expectation for national government to impose above-inflation tariff increases.
While we support the need for Eskom to restructure, it is concerning that they have seemingly made a unilateral decision to implement strategies which will have serious implications on South African taxpayers and businesses. The proposed restructuring of Eskom’s debt to government and the above inflation tariff increases might ease the burden on Eskom, but it will by no means ease the burden on South Africa’s long-suffering consumers.