Eskom

The South African Presidency on Saturday put in place measures to stabilize the country’s power utility, Eskom which is facing governance challenges.

The Presidency issued a statement on Saturday outlining measures to stabilize the state-owned enterprise, which includes appointing a 13 member board to oversee the turnaround of Eskom.

The Presidency said Eskom is critical to the South African economic growth as an enabler to also social transformation. The government also called on the Eskom employees with evidence of wrongdoing to come forward so that the culprits can face the music.

The government also promised to continue with the interventions to the state-owned enterprises to bring about investor confidence.

Eskom has been facing weak financial position, declining revenues and governance failures, which are threatening the sustainability of the company.

President Jacob Zuma, his deputy Cyril Ramaphosa, Finance Minister Malusi Gigaba and Public Enterprises Minister Lynne Brown met and discussed measures to rescue the power utility on Friday.

“We are confident this intervention will restore the important contribution Eskom makes to our economy. We are determined to address the damage that has been done to this institution and place it on a new path of efficiency and integrity,” said Ramaphosa,

“Government calls on all stakeholders, employees, suppliers and members of the public to work together to ensure that these measures are successful. For South Africa to flourish, Eskom must work and work well.”

South Africa’s ruling party, African National Congress welcomed measures to stabilize Eskom. In its statement, ANC said the measures put in place would help to bring about the integrity in Eskom.

The measures would be ratified by Cabinet at its next meeting. Enditem

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