THREAT TO INVESTMENT
Nhlanhla Nene thinks Eskom might need a new business model
'Is the Eskom we have, the Eskom we need?' the finance minister asked, ahead of a WEF roundtable
Finance Minister Nhlanhla Nene has admitted the government may need to relook Eskom’s business model. "We may need to look at the business model itself. Is the Eskom we have, the Eskom we need?" said Nene, speaking to the media ahead of the World Economic Forum (WEF) roundtable in Rosebank on Thursday. Credit rating agencies and investors alike have flagged the biggest state-owned entity as a risk. The power utility has been at the centre of state capture allegations in which a few politically connected individuals benefitted from tenders and contracts. "Eskom is indeed a threat to our investment strategy going forward but we are paying attention to dealing with Eskom and addressing issues of governance there," he said. "We have a board there and most of the people involved in corruption are being dealt with, and some are no longer with Eskom." Eskom is still in the midst of wage negotiations after trade unions rejected a 4.7% increase last week. The country’s power grid has been co...