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Eskom crisis could damage SA economy, says Gordhan

Public Enterprises Minister Pravin Gordhan informed Parliament on Tuesday that more load-shedding can be expected in the coming weeks to allow Eskom to deal with maintenance problems at its power plants.

FILE: Public Enterprises Minister Pravin Gordhan. Picture: EWN

CAPE TOWN - Public Enterprises Minister Pravin Gordhan says that Eskom is in a crisis, the extent of which could damage the economy.

He informed Parliament on Tuesday during debate on the State of the Nation Address that more load-shedding can be expected in the coming weeks to allow Eskom to deal with maintenance problems at its power plants.

An independent audit is to be carried out at the beleaguered power utility and external engineers brought in, to get Eskom back on track.

Public Enterprises Minister Pravin Gordhan has not minced his words about Eskom's incapacity.

"Eskom is currently facing massive problems of a structural, operational and financial nature."

He says a new business model must be adopted but this does not mean the institution will be privatised.

"Eskom is in crisis and the risk that it poses to South Africa, it could severely damage our economy."

Gordhan says that poor design and construction flaws at the Medupi and Kusile power stations have contributed to the lack of generation capacity.

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