Eskom: Where Politics Trumps the Production of Electricity

The latest in a long succession of upheavals in the key parastatals relates to the suspension of the CEO of Eskom after being appointed only eight months previously in August 2014. Instead on their focus being the delivery of their services rather it is factional fights and other considerations that take precedence.

At the highest political levels in South Africa, there seems to be no understanding of the fundamental requirements for a sophisticated economy. Surely the ANC should realise that the requirement to provide power to South Africa supersedes parochial political considerations?

Clearly not! 

It is politics as usual.

Tshediso Matona - the suspended CEO

Tshediso Matona – the suspended CEO

In business whenever there is a crisis one consigns all irrelevant considerations to the bottom draw. It is a case of all hands on deck but more importantly is the need to employ the sharpest, brightest, toughest staff irrespective of age, sex, race or sexual orientation. What Eskom requires now is a CEO with a wealth of power generation experience – preferably a steady 30 year track record. If that means employing a white or a foreigner, it should not be a hindrance. Proven ability is the benchmark and not some racist or xenophobic world view.

Take the suspended CEO, Tshediso Matona, as a prime example. What experience does he possess in managing more than a few dozen staff let alone 56 000 people? How many years’ experience does he possess in managing a technologically complex organisation?

Eskom#1

None on both counts.

When Matona was originally appointed as CEO, the key attribute that the government required from him was somebody who could deal with the politicians. Key skills such as industry knowledge was not factored in by the Ministers own admission. Then the Mail & Guardian ran an article on him. According to Department of Finance insiders, Matona was a very pleasant, approachable and amenable man but he was not a driver. Instead of forcing an issue to finality he would take a back seat.

Exxaro's  Export Coal Dumps

Exxaro’s Export Coal Dumps

Clearly he was the wrong man: pleasant but lacking technical knowledge and drive.

How would the private sector address this issue? Assume that the accounting department was in disarray. Would one employ a junior clerk who would still have to learn basic Excel and accounting skills after being employed or would one employ somebody who is extremely proficient and skilled; Clearly somebody with proficiency and skill who could get up to speed with ease and rapidly distil the essence of the problem, would be the preferred candidate.

Even Matona’s temporary replacement lacks all the basic skills required to hit the ground running!

Arnot Power Station

Arnot Power Station

The Nero syndrome – fiddle while Rome burns – remains the order of the day.

Let us address how seriously the government has taken this crisis. After the last scare in December, Cyril Ramaphosa was appointed to resolve the issues at Eskom. This was accompanied by a promise to report back in three month on progress made.

The report back was made a few weeks ago but what happened. None of the key players in government or Eskom nor even their deputies were able to attend. It was a farce. No questions of any substance could be answered. Instead it was a case of smoke and mirrors and nothing substantial.

Electrical pylons

Electrical pylons

Aside from the latest issue, just last week Eskom announced that they had entered into a supply contract for export grade coal. What is inexplicable is that this coal is unsuitable for South African power plants and will have to be degraded by the insertion of inferior quality coal at a huge cost!

This absurd situation has arisen due to Eskom’s insistence that all new supply contracts will only be concluded with mines having 50% Black Ownership.

The proverbial cut-off-ones-nose-to-spite-one’s-face syndrome applies here, much to SA’s detriment.

Then Solidarity, a white Trade Union, has pre-empted Eskom’s announcement that he will retrench 3000 skilled whites in order to meet their Affirmative Action targets. This ludicrous situation was exposed after Eskom admitted that they are facing a dire shortage of skilled staff.

Fixing a power line

Fixing a power line

How execrable?

Clearly in Eskom’s race-obsessed world, and by implication the ANC, load shedding is preferable to having white owned firms provide the coal or white artisans maintain the plant.

Playing politics rather than service delivery is the ANC’s forte.

It is the same route that a dictator on South Africa’s northern border took. Mugabe has reduced a country once self-sufficient food-wise, to a net importer of foodstuffs.

Land redistribution

The fruits of land redistribution

Such is the consequence of making politics instead of economics the primary driver of policy.

South Africa will rue this day.

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