Infrastructure special report
ENERGY: Eskom get your house in order
The power utility’s scandals and poor governance are derailing the implementation of much-needed alternative energy
Eskom, the state-owned enterprise which supplies the bulk of electricity in SA, has recently been rocked by allegations of dubious coal supply contracts as well as governance issues. Of particular concern to the energy industry, is Eskom’s role in potentially derailing the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The latter had until recently been one of SA,s most successful public-private sector partnerships. "Corporate governance at Eskom has been systematically undermined through poor board and management appointments," says Prof Anton Eberhard of the Graduate School of Business at the University of Cape Town (UCT). "While there may be short-term benefits for a select few in corrupt deals, the broader consequences for the utility and the economy are potentially catastrophic." Eberhard says Eskom is not just any other state-owned enterprise; it is by far the largest, with revenues of around R200bn and assets of more than R600bn and is by far the...