JOHANNESBURG - The Portfolio Committee on Public Enterprises has adopted the Eskom Inquiry report which suggests State Capture at Eskom. This report will now be adopted in the National Assembly.
The report suggests a number of individuals must appear before the Commission of Inquiry into State Capture, led by Justice Raymond Zondo.
The report named Zola Tsotsi, Ben Ngubane and Zethembe Khoza, together with former Eskom Holdings SOC Ltd. Chief Executive Officers Brian Molefe and Matshela Koko.
Eskom chairman Jabu Mabuza confirmed on Wednesday that the power utility was in a state of severe financial difficulty, and admitted that Eskom, as it is conceived and operating, was not sustainable.
Eskom in serious financial trouble
"We are locked into a permanent loss-making position in that our revenue growth is structurally constrained, our operating expenditure has ballooned due to internal inefficiencies and the debt load is impossibly high," Mabuza said.
"The company's operational and financial performance rapidly deteriorated in the first half of this financial year. In the last six months alone we saw significant EBITDA [earnings before interest, tax, depreciation and amortization] margin compression coupled with a further drop in our plant performance."
This as Eskom reported that its revenue marginally increased by three percent to R98.1 billion for the period ended September 30, up from R95.5 billion in the same period last year, but net profit plunged 89 percent percent to R671 million, down from R6.3 billion last year.
The IFP released a statement welcoming the report.
The IFP said in a statement, "The IFP first requested the Chairperson of the Portfolio Committee on Public Enterprises to conduct an investigation into State Capture at Eskom. It is a good day for our democracy as the powers of Parliament has duly been exercised in holding the Executive to account. The Inquiry into Eskom finds former Ministers Lynne Brown and Malusi Gigaba’s lack of oversight was inadequate and led to gross breaches of fiduciary duty and potentially illegal acts. We welcome the fact that law enforcement agencies will now be able to investigate certain individuals and that agencies will report back to Parliament by mid-March on progress made on consequences."
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