Eskom woes costing billions

Unreliable electricity supply affects majority of Africans‚ survey finds
Unreliable electricity supply affects majority of Africans‚ survey finds
Eskom was staring down the barrel yesterday amid a leadership struggle, a strike at its flagship power station and another round of power cuts.

This as government revealed the hundreds of billions of rands that loadshedding was costing the economy.

Yesterday saw construction on South Africa’s multi-billion Medupi power station brought to a halt through a strike.

It also was a day when Public Enterprises Minister Lynn Brown admitted she was deeply concerned with how the parastatal was being run, as rumours circulated that Eskom’s board were meeting to oust their chairman.

The strike at Medupi caused 21000 workers to stop work over the employment of foreign workers, non-payment of completion bonuses and forced removals from housing.

Strikers stoned offices, amid threats to sabotage the site.

Steve Nhlapo, National Union of Metalworkers of South Africa organising campaigns and collective bargaining department head, said: “Black artisans and general workers are being unfairly targeted.

While their white counterparts stay in decent accommodation, blacks are being forced to live in hostels.

Eskom blames their subcontractors who blame Eskom. We don’t care who’s to blame. We want the situation reversed.”

Eskom spokesman Khulu Phasiwe said strikes over the past three years had set the construction project back by a year.

“While one-day strike does not have a serious effect, the accumulative effect of these days is very big.”

He said they were not aware of the workers’ allegations, which will be dealt with.

Meanwhile in parliament, Brown told the public enterprises committee that load shedding had cost the economy between R20-billion and R80-billion a month.

Brown also admitted yesterday that she had asked for legal opinion on how she could legally intervene in Eskom’s affairs.

Brown said that as a shareholder she was responsible for the company but not allowed to interfere politically‚ operationally or managerially in its running.

The minister said she could not for example ask for Eskom’s books to determine its balance or ask for the rationale for certain appointments.

Eskom’s board was reported to be meeting yesterday to remove chairman Zola Tsotsi.

However Eskom’s media desk and the deputy president Cyril Ramaphosa denied such a meeting was taking place.

Brown said she would take a decision on the removal of Tsotsi as chairman once she received a resolution to this effect from the board.

The National Union of Mineworkers accuses Tsotsi of interfering with the award of tenders.

If he is ousted‚ Reuters reports, he would become the latest casualty after its CEO and three other senior executives were suspended earlier this month.

As Eskom announced yet another round of stage 2 loadshedding yesterday, Ramaphosa assured the country that government was working “day and night” to resolve the energy problems.

Answering questions in the National Council of Provinces, Ramaphosa said that South Africa had “overcome worse problems than this” and needed “cool heads and strong will” to solve the problems.

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