Eskom is facing severe challenges, including debt of R450 billion and corruption at all levels in the organization, but its CEO Phakamani Hadebe is confident the company can be turned around.
Speaking to employees, Hadebe shared a number of key decisions which formed part of the company’s turnaround strategy, which is in the process of being finalized.
Eskom’s strategy has four main pillars:
- Cost containment – Eskom is planning to reduce the overall cost base to R33 billion by the end of 2023.
- Debt relief – Eskom will receive R100 billion in direct financial assistance from the government.
- Tariff increases – Increases of 17.1%, 15.4% and 15.5% are needed to make electricity pricing sustainable.
- Separation – Splitting Eskom into generation, transmission and distribution – each individually owned by Eskom Holdings.
Hadebe said they need to cut costs, adding that this can only be achieved through the concerted efforts of Eskom employees working together.
The Eskom CEO said they have been plagued by corruption at all levels in the organization.
He said they are working with the Special Investigations Unit (SIU) to identify and root out corrupt behaviour and activities.
“We have identified a number of companies that need to pay Eskom back for questionable dealings they have been involved in,” Hadebe said.
What is of grave concern, he said, is that these companies could not be involved in corrupt dealings with Eskom without the active enablement and support from some Eskom employees.
He is, however, confident of change and said he looks forward to a future where Eskom employees are energized to go to work and give of their best.