LACK OF OVERSIGHT
Eskom seems compromised in nuclear deal
Research demonstrates that SA’s state-owned entities fall short of their constitutional obligations in terms of oversight, writes Neil Overy
An overwhelming amount of recent research demonstrates that SA’s state-owned entities (SOEs) such as Eskom, fall far short of their constitutional obligations in terms of oversight. For example, in 2011, a joint report by PwC, the Institute of Directors in Southern Africa and the Development Bank of Southern Africa noted the lack of effective oversight of SOEs; in 2012, a report from the Centre for Corporate Governance in Africa at Stellenbosch University called on SOEs to improve their disclosure of information to enable effective oversight; while in 2013, the government’s own review of SOEs called for an "urgent review of oversight practices" that it found to be "inadequate". It is within this context that there are two particularly worrying features of Energy Minister Tina Joemat-Pettersson’s recommendation that Eskom, and not the Department of Energy, should manage the procurement of any new nuclear power stations. The decision vests a great deal of power and responsibility in t...