LETTER: Radical correction needed at Eskom
Power utility has been hollowed out and looted by state capture
Eskom has lurched from one crisis to another over the past 10 years. It has been hollowed out and looted by state capture. Its executives and board members were appointed by Gupta-captured politicians to seek and pillage as many IT, consultancy, coal and administrative contracts as possible with complete fear and favour at the forefront. Strategic decisions to invest in cheap coal mines close to power stations were undermined and suspended to benefit Gupta-linked mines. Coal supply was short-changed at the expense of paying exorbitant prices to these Gupta-mines. Eskom’s wage bill and staff complement has grown out of hand during over the past decades as bonuses and above-inflation increases were dished out. Only a radical and painful correction will keep Eskom from burning out like a meteorite entering Earth's atmosphere. Eskom needs to be split into a generating and transmission entity, with the grid owned and operated by the transmission entity. Only when there is competition on ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.