Today's Labour News

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eskomEngineering News reports that Public Enterprises Minister Pravin Gordhan said on Tuesday that Eskom’s financial and operational problems were unlikely to be solved without structural changes being made at the state-owned electricity utility.  

Speaking at Business Unity SA’s (Busa’s) inaugural Business Economic Indaba, Gordhan said the fiscus did not have capacity “for endless bailouts”, which meant that government was considering major restructuring of Eskom and several other state-owned enterprises (SOEs), some of which were currently struggling to pay salaries every month.  In the case of Eskom, a task team had been established in December to assess its future sustainability and was due to report this week.  “Should Eskom be unbundled into generation, transmission and distribution, as is the worldwide practice?  And, what are the pros and cons of that?  It’s the debate we are going to have soon.  And, it’s going to go beyond a debate, because we need very fast movement if we are going to have Eskom as a credible entity, both operationally and financially, even in a month’s time.”  The Minister also hinted to a major overhaul of how the government managed its entire SOE portfolio.

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