The Board of Eskom should be disbanded and investigated for alleged corruption and wasteful expenditure

18 July 2017

The Congress of South African Trade Unions has noted the reports that Eskom is facing a cash crisis and we reiterate our position that the Eskom Board should be disbanded and investigated. We are disturbed by the government’s hands-off approach in dealing with  the crisis at Eskom.

We still demand answers following an audit report by KPMG that revealed that Eskom sneaked an inflated advance payment of R600m to Chinese firm Dongfang for a controversial R4bn tender to supply a new boiler at its Duvha power station in Mpumalanga. The federation is worried that no one has so far been held responsible for the leadership bungling and the stench of corruption that has surrounded Eskom recently.

COSATU will continue to defend State Owned Entities from being privatised but will also fight against their mismanagement, looting and wasteful expenditure that is prevalent  in companies like Eskom.

We will also oppose the unreasonable electricity tariff hikes, especially under this compromised leadership. Just recently Eskom went to NERSA demanding that hard pressed workers be robbed once again with a massive 19.9% tariff hike.

The shenanigans at Eskom make a mockery of the ANC’s commitment to ensure that state-owned entities operate as powerful instruments of economic transformation. Eskom cannot respond effectively and efficiently to government’s developmental agenda under this current leadership because Eskom’s challenges are self inflicted.

COSATU will vehemently oppose the proposed 19.9% tariff increase that Eskom is requesting because we cannot allow workers to be squeezed and their money thrown into a money pit that the organisation has become.

Issued by Sizwe Pamla, National Spokesperson, COSATU, 18 July 2017