Government’s decision to split Eskom into three separate entities will not lift the company from the brink of collapse. Most of Eskom’s problems are directly attributable to procurement corruption and poor project management, writes vercingetorics
Government’s decision to split Eskom into three separate entities will not lift the company from the brink of collapse.Here’s why: Most of Eskom’s problems are directly attributable to procurement corruption and poor project management.
Cathoros – decidedly an intermediary – buys the coal from coal-mining companies, adds a significant mark-up and sells it to Eskom. When Eskom is split into three entities – transmission, generation and distribution – the buying of coal will remain under generation, where it currently is. The procurement via quotations is also open for abuse in that no one knows who the suppliers are and how they arrived at their quotations.
From the outset, Eskom procurement officials failed the country by giving Black and Veatch a blank cheque to charge whatever it wanted.But because the designs were flawed, taxpayers paid R1 billion more to the same company to fix its mess. All these problems have existed for years at Eskom. Gordhan and the board were appointed early in 2018: What have they done to address such critical issues?
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