Treasury denies move to alter Molefe provision
Eskom has not changed former CEO Brian Molefe’s controversial policy over the 50% plus one black ownership requirement for suppliers
National Treasury and Eskom spokespeople at the weekend flatly denied there were any moves to change previous Eskom CEO Brian Molefe’s controversial 50% plus one requirement for suppliers. This contradicted comments by executives of Exxaro, Eskom’s biggest single coal supplier, at a media briefing after its interim results presentation that Treasury’s intervention was evident since January in giving greater importance to best price in adjudicating contracts instead. It appears official policy is not being implemented in this case. Eskom’s 50% plus one ownership policy is however not government policy, but Eskom has insisted on it. Large-scale coal mines, worth billions of rand and often owned by multinational companies, find it impossible to achieve 50% plus one black ownership in the short term, given uncertainties around investment in South African mines and the environmental lobby’s objections to coal mining, which deter funders. Although their existing long term contracts with E...
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