The ANC has killed the lights at Eskom and it is now up to the people to vote the ANC out of power

Note to Editors: This statement follows the unveiling of a billboard in Johannesburg on 17 February 2019. Please find attached a soundbite in English by John Steenhuisen. Photo's can be downloaded here, here and here. 

South Africans across the country have had to endure rolling blackouts once again after Eskom plunged South Africa into darkness this past week by declaring Level 4 Load-shedding. The fact that Eskom continues to leave our citizens in the dark is further proof that the failing ANC is completely incapable of fixing the challenges at the ailing utility. The ANC has killed the lights at Eskom and it is now up to the people to vote the ANC out of power.

The Democratic Alliance’s (DA) billboard serves to highlight how the failing ANC has mismanaged the once world class power utility by besieging it with corruption, inefficiency, mismanagement and debt. The previous management teams at Eskom have plundered the crippled state-owned entity through pre-paid coal contracts, nepotism, inflated supply contracts and exorbitant consultancy fees with the likes of Mckinsey, Trillian and Tegeta. Furthermore, Eskom executives have consistently rewarded themselves with massive bonuses and salaries. These actions have hollowed out the entity and left it in financial ruin.

Just this past week, President Ramaphosa announced that the Deputy President, David Mabuza would lead a Special Cabinet Committee that serves to preside over this crisis. Deputy President Mabuza has single-handedly turned Mpumalanga into a failed state during his tenure as the Premier. He can hardly be entrusted with leading the team that is meant to resolve the country’s biggest energy crisis. This move is indicative of a President who is constrained by the different factional powers within the ANC. He clearly works for the ANC and does not lead it.

Currently, Ramaphosa’s proposal is for Eskom to be unbundled into a holding company, with three separate business entities to be owned entirely by the holding company. This plan means that each of the three entities will have the same holding board. Thus, the intention to stimulate competition in the generation sector of Eskom will be limited by the fact that the entities are not wholly independent or competitive. They will continue to be state owned. The monopoly will continue.

The ANC’s disastrous 24 years in government has only led to the self-enrichment of its politicians, and Ramaphosa’s plan for Eskom is indicative of a commitment to this ethos, while rolling blackouts continue to threaten the livelihoods of local businesses and the jobs they provide to citizens. Load shedding has significant consequences for our economy, and the productivity of small businesses in particular, which have suffered the biggest blows due to the blackouts. South Africa loses R2 billion a day due to power failures. It is safe to say that load shedding leads to job shedding.

The DA is the only party that can solve the Eskom crisis. Through our “cheaper electricity bill”, Eskom will be broken into two separate entities, namely into a generation and transmission entity. Our offer would see the generation entity privatized in an effort to break Eskom’s monopoly, allowing independent power producers to compete on an equal footing in the generation sector. Well-functioning metros will be able to source energy directly from independent energy suppliers. With the splitting off of the generation component of Eskom, they could look at selling off power stations to different IPPs in order to settle their debts.

The DA plan would amount to real change, not merely the addition of more board members.

The DA will continue to fight for a stable, competitive and affordable electricity sector. The time for change is now. South Africans have the opportunity to force the ANC into experiencing their own Level 4 load-shedding on 8th May 2019. We cannot allow the ANC another term in government – we need to vote for a party that is ready and able to build One South Africa for All, while keeping all the lights on.

Statement issued by John Steenhuisen, DA Chief Whip, 17 February 2019