'It’s us who messed up Eskom' – former deputy finance minister Mondli Gungubele

Jopie Fourie

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ANC national executive committee member and former deputy finance minister Mondli Gungubele says the blame for the state of electricity provider Eskom lies squarely with the governing party.

Gungubele, who was also part of Parliament’s committee looking into state-owned enterprises, told News24 the objective reality was that Eskom had financial, management, maintenance, capacity and reinforcement challenges.

"We were sleeping on the job, even where there is reinforcement, due diligence had not been done very well," he said.

"Even when we were reinforcing, we were not tight on due diligence," he added.

South Africa has been hit by a series of power cuts, with Eskom announcing on Monday that it was implementing Stage 6 load shedding, a first for the country as it battles to keep operations running.

The electricity provider has warned that the rolling blackouts will continue for the rest of the week, amid severe capacity restraints and the flooding caused by the continuous rain, which has also affected some power plants.

The Presidency, in a statement on Monday, said President Cyril Ramaphosa had received an update on developments around the crisis and was in constant contact with Public Enterprises Minister Pravin Gordhan .

Ramaphosa is set to cut his trip to Egypt short, returning home to deal with the ongoing power crisis.

 

Jopie Fourie

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Yes! Yes! You are right, the ANC is the sole cause of the s**t South Africa is finding itself in right now! But, your biggest mistake was to implement AA and BEE, which caused you to replace a few thousand capable, experienced and educated people with tens of thousands of uneducated, inexperienced and incapable people who are not able to do the job and which naturally opened the doors for all the corruption we see today.

Start here if you are serious about saving the country and your own a$$es!
 

ponder

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Eskom should suspend BEE and get the correct equipment at the best possible price till we can get a our electricity supply stable.

And then it will just revert back to the same old same old. Same goes for these soes under business rescue or administration, if they get sorted out it will eventually go back to the former state.
 

EADC

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And then it will just revert back to the same old same old.
If it works keep it like that rework the BEE platform for critical SOE's funnel it into education and skills development like they are currently doing but weighted more in that favour.
 

nightjar

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tens of thousands of uneducated, inexperienced and incapable people who are not able to do the job and which naturally opened the doors for all the corruption we see today.

....tens of thousands of uneducated, inexperienced and incapable comrades....

In about 1969, after South Africa's economic growth rate had topped 6% in various years in the 1960s, electricity demand threatened to outstrip supply and Eskom decided to embark on a concerted programme of building huge coal stations of standardized design, each one having six identical units. The result was that the stations were built on time and on budget and were funded via cheap debt which was timeously repaid, with the taxpayer not having to pay a cent as well as being able to buy extremely cheap electricity – among the cheapest in the world.

In the 1990s Eskom management foresaw a need for additional power stations to avoid the country running out of electricity but action was forbidden by the government, presumably because the right comrades had not yet been placed in strategic positions within Eskom and elsewhere so as to ensure that funds could be diverted to private accounts. The government instead embarked on the arms deal which offered an almost immediate source of ready cash.

Eventually the Government reversed its position; and in 2007 Eskom began building two big new coal stations - Medupi and Kusile as well as a pumped storage scheme at Ingula. By this time the ANC had made a kickback arrangement with Hitachi so that the Party could benefit from the purchase of turbines. The US Securities and Exchange Commission fined Hitachi $19 million for its part in this corrupt transaction.

Medupi and Kusile are six and eight years respectively behind schedule while their cost has increased from the budgeted R163.2 billion to R451 billion. Although completed two years ago Ingula is running at 25% below capacity due to faults in the units.
 
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ponder

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If it works keep it like that rework the BEE platform for critical SOE's funnel it into education and skills development like they are currently doing but weighted more in that favour.

You know and I know that's not how they roll...

I'm willing to bet money on it.
 

EADC

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You know and I know that's not how they roll...

I'm willing to bet money on it.
Of course it's not how they roll, there is no will to do it. Supply chains for SOEs are packed with unnecessary cost which can be eradicated.
 

TheChamp

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That would solve 50% of the problem. Get rid of all current staff and replace them with qualified and experienced staff, then only will you solve the problems at Eskom.
I doubt there is much wrong with most of the staff there, especially the operational ones. It would be nice if Eskom could do a qualifications audit and publish it, it would save us from such posts.
 

daveza

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"We weren’t accepting that we were messing up. Now we are and can be trusted with dealing with it," he said.

It's not often the ANC can make me roll with laughter.
 
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