No decision yet to move Eskom from public enterprises to minerals and energy, says David Mabuza

Deputy President David Mabuza says there’s no decision yet on Eskom being moved from the Department of Public Enterprises to the Department of Minerals and Energy. Picture: Siphephile Sibanyoni/African News Agency (ANA)

Deputy President David Mabuza says there’s no decision yet on Eskom being moved from the Department of Public Enterprises to the Department of Minerals and Energy. Picture: Siphephile Sibanyoni/African News Agency (ANA)

Published Nov 18, 2021

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Cape Town - Deputy President David Mabuza says there is no decision yet on whether to move Eskom from the Department of Public Enterprises to the Department of Mineral Resources and Energy.

Responding to oral questions in the National Council of Provinces, Mabuza said discussions were under way as part of a broader government’s effort to improve the management of parastatals.

He also said the reorganisation once finally decided would better align the mandate of state-owned entities such as Eskom.

“The presidential state owned enterprises council will advise on appropriate shareholder models and repositioning of state-owned companies as effective instruments of economic transformation and development.

“We should wait for the finalisation of the presidential state-owned enterprises council’s work for further guidance as e we continue to engage with key stakeholders to address any bottlenecks and challenges to provide stable energy which will stimulate sustainable economic growth.”

Mabuza said private sector experts were also invited to share expertise and experiences across performance areas in the Eskom political task team that ensures that the entity meets its obligations.

Asked whether the council has put any long term plans for the Eskom debt that hampered transition to renewable energy, Mabuza said the council has work-streams that dealt with aspects of problems that confront state-owned entities.

He also said they expected the council when presenting its report to President Cyril Ramaphosa to come up with recommendations with the main issue being financial and support to the parastatals like Eskom.

“Eskom is in a dire financial situation that is not very easy to resolve. We are looking at a strategic partner that will come with necessary expertise and skills that can complement Eskom and ease the financial burden but we will cross that river when we get there,” Mabuza said.

However, he said the government was looking at additional energy capacity as approved by the Mineral Resources and Energy Department.

“It is not enough to offset the shortage that is why you see some load shedding her and there,” Mabuza said.

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Political Bureau