Changes at the highest levels of crisis-stricken Eskom are looming, as the cabinet meets to discuss a new board.
As the power utility experienced arguably its worst week of rolling blackouts, several well-placed insiders told the Sunday Times of engagements between the presidency and the public enterprises department about a new board.
The talks are expected to be finalised in the coming week.
President Cyril Ramaphosa used yesterday’s Heritage Day speech to say he would “speak soon” about what measures would be taken.
Eskom subjected South Africans to stage 6 load-shedding this week, the most stringent thus far, leaving households and businesses without power for up to six hours a day. On Tuesday, stage 6 was reduced to stage 5 which lasted until midnight on Friday, after which the nation was placed on stage 4.
Ramaphosa, who cut short a visit to the UK after being briefed about the severity of the power crisis last weekend, is expected to present names of proposed new board members to a special cabinet meeting this week.
The Sunday Times understands that when the cabinet met virtually last Wednesday, several ministers expressed dissatisfaction and a decision was taken for heads to roll.
A high-ranking government source said: “Cabinet ministers said they must all go; the board and the executive must go. But the meeting adjourned and has not concluded.”
The Sunday Times further understands a follow-up meeting was supposed to have taken place on Friday but has been moved to this week.
The cabinet received briefings on the state of the grid from public enterprises minister Pravin Gordhan and the newly established National Energy Crisis Committee technical team (Necom).
Both the presidency and the public enterprises department, to which Eskom reports, would neither confirm nor deny the discussions. Officially, the cabinet has said it is still engaged in “intensive deliberations”.
On the current crisis, Gordhan said: “Last Saturday I called an emergency meeting of the board to look into what’s going on, what they are doing, why they are not getting on top of what’s going on — and I expressed my concerns.”
Critically, he said, the right people needed to be brought in at every level.
“For example, the power station managers are good people, have good technical education but they do not have experience. Eskom is bringing in some experienced hands to mentor the younger managers.
"We have a programme to put such people in place and make sure that the right decisions are made at power station level. Some of the best people that Eskom has trained are all over the world,” he said.
After deliberations on both reports, there are further engagements to be had, including the inputs by cabinet
— Presidency spokesperson Vincent Magwenya
Among these veterans is SA Revenue Service commissioner Edward Kieswetter, a power station manager in the late 1990s and early 2000s. Kieswetter declined to discuss his involvement.
On public calls to fire Eskom’s board and CEO André de Ruyter, Gordhan said: “I don’t really want to comment at this stage.”
This is in stark contrast to what Gordhan said a month ago when he expressed confidence in Eskom’s leadership and management.
Presidency spokesperson Vincent Magwenya said Ramaphosa and his cabinet were applying their minds and all options were on the table “because the problems at Eskom are much broader than just one element of governance”.
Magwenya said there were multiple contributors to Eskom’s problems, including systemic challenges of skills, corruption, spare parts, diesel theft and poor coal as a result of the “coal mafia”.
He refused to comment on developments around the board because “right now all elements that can make Eskom function efficiently are being looked at. Equally, all avenues that undermine the utility must be explored.”
De Ruyter told the Sunday Times he would welcome a stronger board. He said Eskom has been asking for some time for new board members as the pressure on the current directors has grown because of a number of resignations.
“I will welcome knowledgeable new appointments.”
The Sunday Times understands that one of the first meetings Ramaphosa was scheduled to have when he arrived back in the country on Tuesday was with the Eskom board but this was cancelled, said a government source.
Ramaphosa then spent most of Tuesday preparing for a scheduled virtual cabinet meeting on Wednesday, and fielding calls on the power crisis.
Magwenya added that on arrival in the UK, Ramaphosa met virtually with ministers including Gordhan, minerals and energy’s Gwede Mantashe, finance’s Enoch Godongwana and director-general Phindile Baleni and Necom officials.
Necom, announced by Ramaphosa in July, comprises officials from Eskom and government departments and is led by Baleni. Its mandate is to achieve long-term energy security.
Magwenya said that, during Wednesday’s cabinet meeting, Gordhan presented a report on the state of the grid and Necom reported on progress it had made.
“After deliberations on both reports, there are further engagements to be had, including the inputs by cabinet.”
Ramaphosa has faced criticism for his apparent lack of action despite coming home early. Several commentators questioned why he had bothered returning if he was not going to take immediate action.
Magwenya said: “He rushed home because he wanted to infuse a sense of urgency”.
Business’s frustration with the lack of action indicates an increasing loss of goodwill towards both Ramaphosa and Eskom.
Business Unity SA noted its “extreme concern” with load-shedding and the lack of tough decisions, saying the “second quarter’s 0.7% decline in the economy was mostly caused by the continued blackouts, which have made this year the worst on record”.
Magwenya said: “The president’s expectation is that maintenance teams work around the clock to make sure they get the country out of the current load-shedding — and that is what the public also expects.”
Another government source said Kieswetter also weighed in on repairs to broken plants at a meeting with Gordhan and some Eskom board members last Saturday.
“He said the focus should be on getting the coal plant to work, and not wanting money to burn diesel and fuel oil. It’s cheaper to get our electricity from coal,” the source said.
Gordhan said there had been constant meetings to review work done.
“Our aim is not to go beyond stage 2. There must be energy adequacy as soon as possible but some of these processes take time.
"We are trying to fix a legacy which started 20 years ago; then made worse by the stealing, neglect and flight of excellent skills during state capture. How we overcome this is the most important thing now.”
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