DA responds to open letter on Eskom
The Democratic Alliance says that Eskom’s power outages are jeopardising countless jobs, and it cannot be tolerated any longer.
Natasha Michael, DA shadow minister Public Enterprises, responded to an open letter by Public Enterprises Minister Lynne Brown, dated 6 November 2014, on Tuesday.
“It is simply scandalous that our country has to face a crisis that could have been avoidable with proper planning and administration by those in power,” Michael said.
In her open letter, Brown said opposition parties should stop fighting against Eskom and should work with government to improve the situation.
“Eskom is an easy target and can be bullied by all and sundry, while it, as a state-owned company, is required to take the blows without being permitted to respond in like fashion,” Brown wrote in the letter to Michael on Thursday, last week.
The minister said that while those who whipped up hysteria may feel very pleased with themselves, they are, inadvertently delivering a body blow to the creation of jobs and the growth of the economy.
On Tuesday, Michael, said: “The current situation at Eskom and other SOEs is damaging to our economy and to our international reputation and cannot continue along the current trajectory of continual bailouts and failure to deliver.
Michael requested that the following information be made available to the Portfolio Committee as a matter of urgency:
- All maintenance records for the silos at Majuba power station, in particular the information relating to the quantity, quality and nature of coal stored in the silos;
“As you know, the use of wet coal would increase the risk of damage to silos. Given previous media reports detailing Eskom’s widespread use of wet coal, I believe this is a legitimate concern that should be directly addressed by your department,” Michael said.
- All contracts relating to the construction of Medupi and Kusile power stations;
“We have long been denied access to this information. In the spirit of openness, accountability and constructive engagement with the opposition I would like to invite you to share all of this information with the committee.”
- Details on who the principal contractors for Medupi and Kusile are; and
- All contractual agreements with the New Age, in particular relating to the sponsorship of New Age business breakfasts by Eskom.
In addition, the DA requested that the minister respond to the other points it raised recently including:
- Whether the department will freeze executive pay at Eskom, currently totaling R60 million a year;
- Whether it can give assurances that load shedding will not continue for the rest of the year;
- Whether or not the department will rescind the R63 million sponsorship deal Eskom has signed with the New Age newspaper;
- Whether or not the Portfolio Committee will be invited to an urgent oversight visit of the Majuba power station; and
- Whether the department or Eskom will publicly explain the plan to ensure that no further blackouts take place this year.
Moody’s Investor Services on Thursday cut Eskom’s rating to subinvestment grade, or junk status, at Ba1 with a stable outlook.
In its rationale for the downgrade, Moody’s said that it’s assumption of a high level of government support in the event of financial distress is underpinned by Eskom’s strategic importance to the government’s social and economic policy as the country’s dominant electricity supplier.
More on Eskom
Stop Eskom “hysteria” and work with government: minister
Freeze Eskom’s ‘disgusting’ executive pay: DA
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