Financial Fiscal Commission 'concerned' about leadership instability at Eskom
The FFC provides guidance to the government and legislatures on fiscal and financial matters.
CAPE TOWN - The Financial and Fiscal Commission (FFC) said it was concerned about continuing leadership instability at Eskom and the lack of a clear strategy to improve its viability and return it to profitability.
The FFC provides guidance to the government and legislatures on fiscal and financial matters when it briefed Parliament’s Standing Committee on Appropriations on the Special Appropriation Bill on Tuesday.
The bill provides an additional bailout of R26 billion for the debt-ridden power utility for the rest of this year and R33 billion for the next financial year.
FFC chairperson Professor Daniel Plaatjies said financial challenges were only a fraction of Eskom’s problems.
He said the situation at Eskom epitomised the governance, leadership and general inefficiencies that characterised all state-owned companies.
Plaatjies said while the R59 billion bailout provided for in the Special Appropriations Bill would signal to investors that the government was committed to resolving the energy crisis, it would also compound the risks Eskom poses to the economy as a whole.
He said it was worrying that the bailout was not anchored in a sound and monitorable plan or strategy to get Eskom out of the doldrums and on to a sustainable growth path.
He said the bailout comes at a time of a leadership void at the power utility and while a chief restructuring officer has been appointed, there was no chief executive officer in place to work with him.