{"id":474181,"date":"2022-12-14T11:59:02","date_gmt":"2022-12-14T09:59:02","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=474181"},"modified":"2022-12-14T12:09:56","modified_gmt":"2022-12-14T10:09:56","slug":"why-eskom-is-collapsing","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/474181-why-eskom-is-collapsing.html","title":{"rendered":"Why Eskom is collapsing"},"content":{"rendered":"<p>Solidarity CEO Dirk Hermann said there are two main reasons for Eskom\u2019s collapse \u2013 corruption and race-based policies.<\/p>\n<p>In 2022, South Africans endured the worst load-shedding the country has ever seen. Hours of power outages per day are now commonplace.<\/p>\n<p>Load-shedding is also the main reason for South Africa\u2019s stunted economic growth, resulting in high unemployment and poverty levels.<\/p>\n<p>Eskom CEO Andr\u00e9 de Ruyter promised that load-shedding would be significantly reduced from September 2021 because of their extensive maintenance program. It did not happen.<\/p>\n<p>Load-shedding continues to get worse, and neither Eskom nor the government has a coherent plan to address the electricity shortage.<\/p>\n<p>Commenting on the situation, Hermann said there are two main reasons for power outages:<\/p>\n<ul>\n<li><strong>Corruption and greed<\/strong>\u00a0have seen criminals steal the power utility dry under the guise of black economic empowerment (BEE).<\/li>\n<li><strong>Race-based policies<\/strong>\u00a0like affirmative action have destroyed institutional knowledge and skills at Eskom.<\/li>\n<\/ul>\n<p>Hermann highlighted that corruption and the\u00a0<strong><a href=\"https:\/\/dailyinvestor.com\/south-africa\/4979\/eskom-embraces-bee-and-transformation-despite-serious-problems\/\">obsession with race<\/a><\/strong>\u00a0are still prevalent at Eskom and continue to harm the company.<\/p>\n<div id=\"attachment_395033\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-395033\" class=\"size-full wp-image-395033\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new-640x426.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/04\/Dirk-Hermann-Solidarity-headline-new-768x512.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-395033\" class=\"wp-caption-text\">Dirk Hermann, Solidarity CEO<\/p><\/div>\n<p>Other high-profile leaders share Hermann\u2019s view and have asked the government to address these challenges.<\/p>\n<p>Eskom board member and former Altron CEO Mteto Nyati warned that empowerment rules hamper Eskom\u2019s performance.<\/p>\n<p>Nyati said these rules would have to go if there was any chance of ending South Africa\u2019s deepening electricity crisis.<\/p>\n<p>\u201cInternal corruption is largely at the back of empowerment policies that promote local small businesses,\u201d Nyati said.<\/p>\n<p>He added that affirmative action is hampering Eskom\u2019s ability to employ skilled people who can fix the company.<\/p>\n<p>\u201cRight now, we need to be focusing on who is the best person for the job because those are the ones who should be fixing what needs to be fixed, regardless of how they look,\u201d he said.<\/p>\n<div id=\"attachment_365036\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Mteto-Nyati.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-365036\" class=\"size-full wp-image-365036\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Mteto-Nyati.jpg\" alt=\"\" width=\"640\" height=\"430\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Mteto-Nyati.jpg 640w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Mteto-Nyati-595x400.jpg 595w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/08\/Mteto-Nyati-300x202.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-365036\" class=\"wp-caption-text\">Mteto Nyati, Eskom board member<\/p><\/div>\n<p><strong><a href=\"https:\/\/mybroadband.co.za\/news\/investing\/473583-insider-reveals-fraud-corruption-shoddy-work-destroying-eskom.html\">Eskom generation executive Rhulani Mathebula said<\/a><\/strong>\u00a0Eskom\u2019s biggest problem is fraud and corruption.<\/p>\n<p>Mathebula said the impact of fraud and corruption is felt throughout the company and undermines any effort by the great engineers and other staff at Eskom.<\/p>\n<p>The problems include people stealing coal and diesel, damaging plants to get maintenance contracts, and delivering the wrong spares and equipment.<\/p>\n<p>Because of corruption and fraud, there are significant delays in awarding contracts and \u201cshady service providers\u201d whom do very poor work are employed.<\/p>\n<p>\u201cFraud and corruption are the biggest enemies of progress at Eskom. It is the most important issue to fix Eskom to get the maintenance program back on track,\u201d Mathebula said.<\/p>\n<hr \/>\n<p><em>This article was first published by <strong><a href=\"https:\/\/dailyinvestor.com\/south-africa\/6733\/two-reasons-eskom-is-collapsing\/\" target=\"_blank\" rel=\"noopener\">Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n<h2 class=\"my-4\">Now read:\u00a0<a href=\"https:\/\/mybroadband.co.za\/news\/energy\/473867-fnb-and-mediclinic-preparing-for-total-eskom-grid-collapse-even-if-it-is-unlikely.html\">FNB and Mediclinic preparing for total Eskom grid collapse \u2014\u00a0even if it is unlikely<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Several high-profile leaders and experts have highlighted two main reasons for South Africa&#8217;s ongoing power crisis.<\/p>\n","protected":false},"author":341108,"featured_media":467549,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[61891,10280,181,35,51867,143],"class_list":["post-474181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-andre-de-ruyter","tag-dirk-hermann","tag-eskom","tag-headline","tag-loadshedding","tag-solidarity"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/474181"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=474181"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/474181\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/467549"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=474181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=474181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=474181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}