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State Companies News

Eskom wants Medupi Unit 3 defect repairs completed on schedule despite Covid-19 restrictions

By: Terence Creamer 3rd April 2020 State-owned electricity utility Eskom has not shifted its April 9 deadline for returning Medupi Unit 3 to service, despite work restrictions imposed at the Lephalale site, in Limpopo, in response to the Covid-19 pandemic. The unit was shut for 75 days on January 26 to address defects that... →

Local project scarcity causes loss of top-class engineers

By: Darren Parker 3rd April 2020 The scarcity of public-sector projects is leading to massive retrenchments and the loss of South Africa’s world-class consulting engineers to foreign markets, says law firm LNP Attorneys CE Nikita Lalla. “Insufficient project implementation is causing the engineering and construction sector... →

NIKITA LALLA There is an abundance of talking without timeous, practical implementation

Adopt QCBS mindset – Cesa

By: Darren Parker 3rd April 2020 Industry association Consulting Engineers South Africa (Cesa) is embarking on a focused marketing drive in the second quarter of this year as part of a renewed effort to raise awareness surrounding quality cost-based selection (QCBS) within the public and private sectors. QCBS is the notion that... →

Cesa CEO Chris Campbell discusses some of the key concerns facing the consulting engineers sector in South Africa. Camerawork: Nicholas Boyd. Editing: Nicholas Boyd. Recorded: 06.03.2020

Building for sustainability promotes valuable returns

3rd April 2020 There is a direct link between the stability of an economy and ongoing development, says consulting engineers firm WSP Africa structures regional director Johan Piekaar. Currently, the local construction and property industries are experiencing a lull owing to reduced expenditure by government on... →

Photo by Creamer Media
CONSTRUCTIVE BUILDING Implementing a sustainable building philosophy provides value-add throughout the value chain

New chair of financially beleaguered Necsa outlines priorities

By: Rebecca Campbell 3rd April 2020 The financially-beleaguered South African Nuclear Energy Corporation (Necsa), which falls under the Department of Mineral Resources and Energy (DMRE), had a new board appointed in late January, to oversee and turnaround the agency. The chairperson of this new board, which has a term of three... →

SAA to operate repatriation charter flights, starting with operations to Germany

By: Rebecca Campbell 2nd April 2020 State-owned national flag carrier South African Airways (SAA) is to undertake charter flights to repatriate foreign citizens caught in South Africa by the national lockdown which started at midnight March 26/27. This lockdown is an attempt to counter the Covid-19 pandemic. The first such flights... →

Wind IPPs given some clawback relief as Eskom issues surprise force majeure notices

By: Terence Creamer 1st April 2020 In its force majeure notice to wind independent power producers (IPPs), Eskom has indicated that, should the system operator issue an instruction to a wind farm to reduce energy output during the period of the Covid-19 lockdown, the IPP would be granted an extension equivalent to the period of... →

Eskom gearing up to run philosophy maintenance ‘as a project’ following Covid-19 hiatus

By: Terence Creamer 1st April 2020 State-owned electricity producer Eskom is gearing up to implement philosophy maintenance as a centralised project across its unreliable coal fleet, where ongoing breakdowns have increased the risk of growth- and confidence-sapping load-shedding. The utility’s board has given its approval for the... →

Mbalula provides clarity on aviation directives

By: Simone Liedtke 31st March 2020 Since the announcement by President Cyril Ramaphosa that South Africa would embark on a 21-day national lockdown, the majority of aviation activities have slowed dramatically, with all domestic airlines having halted passenger flights effective from the start of the lockdown. South Africa’s... →

Transport Minister Fikile Mbalula

Two unions jointly attack the government over regional airline SA Express

By: Rebecca Campbell 31st March 2020 In a joint statement on March 31, the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) have blasted the government over its handling of the crisis in State-owned regional airline SA Express. Their response was to a statement on the... →

Zimbabwe at last pays off debt to Eskom

By: News24Wire 31st March 2020 Zimbabwe has paid off all its debts to Eskom and is now in a position to negotiate for a new deal, the country’s Minister of Energy, Fortune Chasi, tweeted on Monday evening. Eskom in the past threatened to cut off electricity supplies to Zimbabwe after its debt reached $33-million. In August... →

Covid-19 may exacerbate the abuse of power – Corruption Watch

By: Sane Dhlamini 31st March 2020 Not-for-profit organisation Corruption Watch on Tuesday released its yearly corruption report with executive director David Lewis saying South Africans should not expect corruption to lessen during the coronavirus pandemic. This year’s report is themed “The Writing is on the Wall” and shows... →

Corruption Watch executive director, David Lewis

Taxpayers urged to remain compliant during Covid-19 lockdown

By: Simone Liedtke 31st March 2020 The South African Revenue Services (Sars) has acknowledged the impact the spread of Covid-19 could have on businesses and people within an already struggling economy. Consequently, it has pledged its commitment to maintaining the essential services that it provides in efforts to mitigate the... →

Public Enterprises to study liquidation application by SA Express business rescue practitioners

By: News24Wire 30th March 2020 Allegations by the business rescue practitioners of SA Express that the government deliberately withheld financial support from them, and that the state's approach to the business rescue process was unconstructive are baseless, the Department of Public Enterprises has said. The department on... →

Transnet avails designated properties to be used as quarantine sites, shelters

By: Simone Liedtke 30th March 2020 State-owned Transnet has designated properties across three provinces to be used as quarantine sites and shelters for the homeless during South Africa's 21-day lockdown period. Transnet, in partnership with local government authorities in Gauteng, KwaZulu-Natal and the Free State, will support... →

No more taxpayers’ money for regional airline SA Express

By: Rebecca Campbell 30th March 2020 The Department of Public Enterprises (DPE) issued a press release on March 29 regarding the business rescue process for State-owned regional airline SA Express. In it, the DPE stated it “noted” that the airline’s Business Rescue Practitioners (BRPs) had made a court application to liquidate SA... →

Transnet scales back to only essential services, operations

By: Simone Liedtke 27th March 2020 In line with government’s implementation of a three-week lockdown of the country to reduce the spread of the Covid-19 virus, State-owned entity Transnet will be scaling down its transportation services and operations of non-essential cargo during this period. After consultation with various... →

Eskom postpones ‘philosophy maintenance’ as it shuts units in response to drop in demand

By: Terence Creamer 27th March 2020 State-owned electricity producer Eskom has reported that demand dropped by more than 6 000 MW on the afternoon of March 26 as businesses shut in anticipation of the start of the nationwide Covid-19 lockdown. The utility also indicated that a further reduction in demand was anticipated for the... →

Carrier suspends operations days after issuing safety assurances

By: Rebecca Campbell 27th March 2020 State-owned regional airline SA Express, which is currently in business rescue, suspended its operations on Wednesday March 18. This was because of “adverse recent developments including the impact of the Covid-19 pandemic.” →

Covid-19 forces SAA to cut services

By: Rebecca Campbell 27th March 2020 State-owned national flag carrier South African Airways (SAA), which was undergoing business rescue, has scaled down its capacity because of the fall in air passenger demand. This is the result of the Covid-19 pandemic, which has severely affected the global air transport industry. Under these... →

Industry reaction to Minister’s call for higher levels of clean-coal investment

By: Mamaili Mamaila 27th March 2020 There is much scepticism domestically and internationally about the potential for clean-coal technology (CCT). In South Africa, however, there has been an amplification in recent months of calls for accelerated efforts to be made to finding innovative solutions to the serious environmental and... →

Photo by GE
POWER PLANT OPTIMISATION Eskom’s Kusile power station’s use of the wet flue gas desulphurisation technology ensures lower emissions

SAA business rescue plan to be published in May, acting CEO steps down

By: Rebecca Campbell 26th March 2020 The business rescue practitioners (BRPs) for South African Airways (SAA) have been given an extension to May 29 to publish the business rescue plan for the airline. The business plan was previously set to be published on March 31, amid a national lockdown to try to prevent the further spread of... →

Transnet appoints new acting CFO

By: Marleny Arnoldi 26th March 2020 State-owned freight utility Transnet has appointed Mark Gregg-Macdonald acting CFO following the resignation of acting CFO Mohammed Mahomedy. The utility is in the process of recruiting a permanent group CFO. →

South Africa's Eskom says coal stocks healthy ahead of lockdown

By: Reuters 25th March 2020 South African power utility Eskom said on Wednesday that coal stocks at its power stations were healthy, with at least 20 days of supplies at all stations, before a nationwide lockdown over the coronavirus outbreak starting at midnight on Thursday. Eskom said all its activities were considered... →

SAA has also suspended its African regional flights

By: Rebecca Campbell 23rd March 2020 On Friday and Saturday, South African Airways (SAA) suspended all its regional flights – that is, flights to other African countries – until May 31. This followed the airline’s suspension of all its international flights earlier on Friday. This decision was taken “to support the Government... →

Photo by SAA
An Airbus A320 of SAA

Eskom: No power cuts expected this week, but keep reducing demand

By: News24Wire 23rd March 2020 Power utility Eskom says it is not planning to implement load-shedding during this week. With South Africa's electricity system still constrained and vulnerable, however, the utility says it may need to implement rotational power cuts at short notice should the system performance deteriorate.... →

Public Enterprises, business rescue practitioners battle over SA Express

By: Rebecca Campbell 20th March 2020 The Department of Public Enterprises (DPE) has expressed, in a statement, its concern about the direction that the business rescue process for State-owned regional airline SA Express was taking. “[T]he Business Rescue Practitioners [BRPs] are planning to ‘ground’ the airline without first... →

ACSA has started implementing air travel restrictions at its airports

By: Rebecca Campbell 20th March 2020 The Airports Company South Africa (ACSA) announced on Friday that it had, in conjunction with the other appropriate authorities, implemented the air travel restrictions decreed by the government, as a result of the Covid-19 pandemic. These restrictions apply to air travellers from designated high... →

SAA gives reasons for its suspension of all its international flights

By: Rebecca Campbell 20th March 2020 State-owned South African Airways (SAA) has explained why it has suspended all its international flights until May 31. (The suspension was announced on Friday and took immediate effect.) “In support of efforts by Government to deal with this [Covid-19] pandemic, and in the best interests of our... →

Photo by Duane Daws/Creamer Media
An Airbus A330 widebody airliner of SAA

SAA suspends all international flights until end of May

By: News24Wire 20th March 2020 Troubled state-owned airline South African Airways has announced that it is immediately suspending all international operations until 31 May 2020 in light of a government travel ban aimed at stopping transmission of the novel coronavirus. In a statement issued by SAA spokesperson Tlali Tlali,... →

Public Works building Beitbridge fence, securing quarantine facilities

By: Tasneem Bulbulia 19th March 2020 The Department Of Public Works and Infrastructure (DPWI) has undertaken several measures within its mandate, in response to the spread of Covid-19. As part of an ongoing process, the department has identified 37 State-owned properties in various provinces which could possibly be used as... →

Eskom talks to get coal for Kusile plant drag on for 13 years

By: Bloomberg 19th March 2020 State-owned power utility Eskom has yet to agree a supply contract for the bulk of coal needed for its newest power station, more than a decade after approving a plan to negotiate with Anglo American. In 2007, an Eskom committee signed off on the start of talks with Anglo for as much as... →

SAA cuts services in response to Covid-19

By: Rebecca Campbell 18th March 2020 State-owned national flag carrier South African Airways (SAA) announced on Wednesday that it had scaled down its capacity because of the fall in air passenger demand. This is the result of the Covid-19 pandemic, which has severely affected the global air transport industry. Under these... →

SAA scraps 162 flights amid Coronavirus crisis

By: News24Wire 18th March 2020 National carrier South African Airways is scaling down its capacity, as coronavirus impacts consumer demand, the airline said in a statement issued on Wednesday. The airline is cancelling as much as 162 flights between 17 March and 31 March 2020. Of these 38 are international and 124 are... →

Emfuleni municipality reaches agreement to settle debt owed to Eskom

By: Simone Liedtke 18th March 2020 State-owned power utility Eskom, led by CEO André de Ruyter, met with senior officials of the Gauteng Department of Cooperative Governance and Traditional Affairs (CoGTA) and executive mayors on Tuesday to resolve issues around the debt owed by municipalities to Eskom. The meeting was convened by... →

Photo by Creamer Media's Donna Slater
Eskom CEO André de Ruyter

SA Express to halt all flights for an indeterminate time

By: Rebecca Campbell 18th March 2020 State-owned regional airline SA Express, which is currently in business rescue, announced on Wednesday that it would suspend its operations the following day, Thursday March 18. This was because of “adverse recent developments including the impact of the Covid-19 pandemic.” The suspension will... →

Photo by SA Express
A Bombardier CRJ-700 of SA Express

Eskom graft probe widens into contracts with global partners

By: Bloomberg 16th March 2020 Eskom Holdings contracts with five international companies will be scrutinized by South African state investigators as part of a widening probe into graft at the debt-laden State-owned utility. The probe will review agreements with North American engineering services firms WSP Global and Black &... →

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