Accessibility links

Breaking News

‘South Africa’s Eskom Crippled by Corruption’: Experts


FILE PHOTO: The logo of state power utility Eskom is seen outside Cape Town's Koeberg nuclear power plant
FILE PHOTO: The logo of state power utility Eskom is seen outside Cape Town's Koeberg nuclear power plant

Experts argue that South Africa’s state-owned power utility Eskom has been crippled by debt and beset by corruption scandals that are preventing the company from keeping the lights on nationwide.

Experts report that several South African power stations that are operating under Eskom are at least 45-years old and break down frequently.

Experts add that the nation is experiencing record power cuts due to the utility having to cater for over 90 % of the population.

Kyle Cowan, the author of “Sabotage,” a book detailing Eskom’s troubles said the power utility company is a source of frustration for several South Africans.

“To South Africans today, (Eskom) represents a source of enormous frustration and ridicule,” said Cowan.

“Eskom has basically been mismanaged into the ground,” added the author.

Cowan’s sentiments were echoed by Finance Minister Enoch Godongwana who admitted Eskom’s woes by highlighting “the debt situation, which is making it difficult to move with speed, in particular upgrading their plants.”

In an interview with eNCA news agency, the firms recently resigned CEO Andre de Ruyter said his former company was plagued by corruption.

“In one egregious case, the company had been paying R80,000 ($4,300) a piece for knee guards sold in retail stores for R290 ($16),” said de Ruyter.

Roula Inglesi-Lotz, an economics professor at the University of Pretoria said the nation’s power crisis was not triggered by corruption at Eskom.

“Corruption is not the reason why the energy crisis started, but it’s a big reason why it is not solved,” said Inglesi-Lotz.

The economics professor also added that the challenges faced by the state-owned utility that has had over a dozen CEO's in 15 years, will take a while to address.

“There are no quick fixes,” she said.

XS
SM
MD
LG