LETTER: ANC wrecked Eskom
The party, not the Guptas, oversaw the deployment of politically connected cadres who made the decisions that have crippled the power utility
Eskom has been living dangerously for a number of years, increasing its wage bill and employee numbers while trying to borrow its way out of trouble. It is now facing an unprecedented financial crisis, with borrowing costs set to soar to R600bn over the next few years. The current finance costs are already R41bn for the year —money used to service debt and nothing else. The power utility has continuously applied for above-inflation increases in electricity tariffs, even though its energy availability on the grid has declined by 11% since 2006. The cost of electricity generation per kilowatt hour has increased by 345% since 2006. Let me repeat that figure to let it sink in: 345%. All the while, Eskom’s credit rating has plummeted to below investment grade. The ANC has helped facilitate this rapid decline of Eskom. The ANC, not the Guptas, has overseen the deployment of politically connected cadres such as Brian Molefe, Matshela Koko and Anoj Singh, who made short-term, self-looting d...
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