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State Companies News

Treasury releases new public procurement rules after tender suspension imbroglio  

By: News24Wire      11th March 2022 National Treasury released updated government tender regulations for comment under the Preferential Procurement Policy Framework Act on Friday, ending the uncertainty that had put government tenders on hold since mid-February. On 25 February National Treasury issued a circular stating that the... 

Cape Town trains suspended for second time in one week after vandalism

By: News24Wire      11th March 2022 Metrorail has implemented extra security measures after a second attempt to steal cables providing electricity to its trains. All trains in the Western Cape were halted on Tuesday following vandalism to the cables during load shedding. The latest attempt, which took place on Thursday at around at... 

South Africa's energy crisis  

11th March 2022 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about what led to the latest bout of load-shedding, the cost to Eskom of having to burn huge amounts of diesel at its open cycle gas turbines, the outlook for the electricity generation sector for the rest of this... 

Engineering News Editor Terence Creamer
Terence Creamer unpacks South Africa's energy crisis (Camera & Editing: Nicholas Boyd)

No more tenders: Govt entities react to Treasury's request as it 'seeks clarity'

By: News24Wire      11th March 2022 Government departments, State-owned entities (SOEs) and business formations have expressed concern over National Treasury's circular advising that the issuing of new tenders from mid-February should be stalled, saying service delivery and infrastructure maintenance could be badly impacted if they... 

Sanral dealing with ‘significant backlog’ in procurement  

By: Irma Venter     10th March 2022 The South African National Roads Agency Limited (Sanral) says it is dealing with a “significant backlog in procurement”. There are a number of reasons for this, including a process between the agency and National Treasury to seek clarification on the 30% subcontracting clause, which took 18... 

The R75 between Jansenville and Wolwefontein

Eskom readies for R5bn first phase of battery storage roll-out  

By: Terence Creamer     10th March 2022 State-owned electricity producer Eskom says it is in the final stages of pre-contract discussions for the first phase of its much-anticipated battery energy storage system (BESS) deployment, which will involve investments valued at about R5-billion. During Phase 1, the utility aims to introduce... 

A battery storage system

Load-shedding, vandalism wreak havoc with train services in Cape Town

By: News24Wire      9th March 2022 Train commuters in Cape Town had to keep their fingers crossed during load-shedding on Wednesday as Metrorail worked to keep systems up and running. On Tuesday, services had to be cancelled because of vandalism at the Tafelbaai high voltage substation, on top of load-shedding. 

Eskom, Hawks swoop on cable theft syndicate in Mpumalanga 

By: Creamer Media Reporter      9th March 2022 Power utility Eskom reports that its investigators, along with members of the Vosman South African Police Service (SAPS) and the Hawks' Serious Organised Crime Unit on March 8 arrested at least 14 suspects involved in alleged cable theft. The suspects were arrested during the raid of premises in... 

Vandalised infrastructure on the 400 kV Vulcan transmission line
Vandalised infrastructure on the 400 kV Vulcan transmission line

Fuel theft on Transnet pipeline causes ‘massive’ diesel spill

By: Darren Parker     9th March 2022 State-owned Transnet Pipelines has reported a “massive” diesel spillage caused by fuel thieves tampering with the network. In the early hours of March 9, a pressure drop on the multiproduct pipeline between Durban, in KwaZulu-Natal, and Heidelberg, in Gauteng, was detected by the Transnet... 

Transnet's multiproduct pipeline

Solidarity union submits warrants of execution to seize Denel assets over failure to pay staff

By: Rebecca Campbell     9th March 2022 The Solidarity trade union announced on Wednesday that it had submitted warrants of execution, worth some R90-million, against State-owned defence industrial group Denel, to the sheriff of the court. This followed Denel’s failure to abide by a Labour Court order and pay, by March 8, union members... 

Diesel supply and pricing again under the spotlight as Eskom intensifies cuts to preserve reserves  

By: Terence Creamer     9th March 2022 Eskom has again issued a warning over the supply and pricing of diesel, which it has been consuming at extreme levels in recent days to cover for its underperforming coal fleet, the energy availability factor (EAF) of which has now slumped to below 60%. The State-owned utility deployed its open... 

Eskom COO Jan Oberholzer
Photo by Creamer Media's Donna Slater
Eskom COO Jan Oberholzer

Stage 4 load-shedding kicks in on Wednesday morning

By: News24Wire      9th March 2022 Eskom has announced that Stage 4 load-shedding will be implemented from 09:00 on Wednesday morning until 05:00 on Friday.  Thereafter load-shedding will be lowered to Stage 2 until 05:00 on Monday.  

Electricity pylons

Steeply rising diesel prices may increase load-shedding risk as Eskom warns of difficulties in absorbing costs  

By: Terence Creamer     8th March 2022 State-owned utility Eskom says it is still in the process of quantifying the likely impact of surging diesel prices on the cost of producing electricity at its open cycle gas turbine (OCGT) facilities but has cautioned that continued steep price rises will be difficult to absorb in light of its... 

Eskom CFO Calib Cassim
Photo by Creamer Media's Donna Slater
Eskom CFO Calib Cassim

Eskom to continue power cuts until Saturday morning

By: Reuters     8th March 2022 Power utility Eskom said on Tuesday it will continue power cuts in the country until 05:00 on Saturday as many of the power plant units broke down on Monday and are under repair. The power cuts, called Stage 2 load-shedding in South Africa, started from 17:00 on Monday. 

Eskom power lines

Eskom to implement Stage 2 load-shedding from 17:00 on Monday

By: Creamer Media Reporter      7th March 2022 Power utility Eskom will implement Stage 2 load-shedding from 17:00 on Monday to 05:00 on Wednesday morning, as Medupi Unit 3 had also broken down. Earlier, Eskom announced load-shedding would begin at 21:00 on Monday. 

One of Eskom's coal-fired power stations

Capacity, resource management critical to prosecuting State capture perpetrators

By: Donna Slater     7th March 2022 With the latest volume of the Zondo Commission report having been released, Business Leadership South Africa (BLSA) CEO Busi Mavuso says it will be critical to manage the capacity and resources of South Africa’s investigating and prosecuting services. In this regard, she notes that the National... 

Sakeliga says Treasury has confirmed organs of State may proceed with procurement

By: Tasneem Bulbulia     4th March 2022 National Treasury director-general Dondo Mogajane on March 4 indicated to business organisation Sakeliga that his circular to organs of State regarding continued black economic empowerment (BEE) pre-requirements and stopping tenders was not binding. “This comes after a countrywide crisis was... 

Eskom defers steam generator replacement at Koeberg Unit 2 to Aug 2023 

By: Terence Creamer     4th March 2022 Eskom has announced the deferral of a project to replace three steam generators at Koeberg Unit 2 to August 2023 following a review, conducted together with Framatome, which indicated that the replacements were unlikely to be completed within the six-month timeframe allocated for the project. COO... 

The Koeberg nuclear power station
The Koeberg nuclear power station

Companies must do fact finding if adversely mentioned in State capture report – Pinsent Masons advises 

By: Thabi Madiba     4th March 2022 Pinsent Masons partner and white collar crime expert Edward James has advised companies to stay up to date with media reports about companies implicated in State capture and to check whether suppliers are adversely mentioned in the Judicial Commission of Inquiry into State Capture report.... 

Pinsent Masons partner Edward James
Pinsent Masons partner Edward James unpacks 'What to do if you, your client or a supplier are implicated in a State Capture report' (Editing: Nicholas Boyd)

State capture report, Part 3: ANC, Zuma and Mokonyane implicated in Bosasa graft

By: News24Wire      2nd March 2022 The damning third part of the State Capture Inquiry report painted a picture of how the African National Congress (ANC) and its deployees in government departments were heavily compromised by Bosasa.  "Corruption was central to Bosasa's business model," the report found.  

Commission of Inquiry into State Capture

Maynier warns that govt tenders are at risk of coming to a halt

By: Tasneem Bulbulia     28th February 2022 Western Cape Minister of Finance and Economic Opportunities David Maynier has written to Finance Minister Enoch Godongwana to request that a note – ‘Preferential Procurement Regulations, 2017 – Minister of Finance vs Afribusiness NPC [2022] ZACC 4’ – issued by the Office of the Chief Procurement... 

TFR to release tender in April for take-or-pay access to container corridors 

By: Terence Creamer     28th February 2022 Transnet Freight Rail (TFR) will release a request for proposals (RFP) on April 1 for the sale of slots to private operators on the key container corridor linking Gauteng and Durban, as well as parts of the Cape corridor. The State-owned utility tells Engineering News that it is in the process of... 

The City Deep terminal
The City Deep terminal

Mantashe says Eskom to seek permission for coal-to-gas switch at some old stations  

By: Terence Creamer     25th February 2022 Mineral Resources and Energy Minister Gwede Mantashe says he expects Eskom to make an application soon for a Section 34 determination to facilitate gas-to-power generation at some of the coal power stations that the utility aims to repower and repurpose as part of its unfolding just energy... 

Mineral Resources and Energy Minister Gwede Mantashe
Photo by Creamer Media Chief Photographer Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

Wescoal puts Vanggatfontein on care and maintenance as it struggles to secure Eskom CSA extension 

By: Chanel de Bruyn     25th February 2022 Coal miner Wescoal has decided to put its Vanggatfontein Colliery on care and maintenance while it tries to secure an extension to a coal supply agreement (CSA) with power utility Eskom. Wescoal acquired the mine, in Delmas, Mpumalanga, in 2017 as part of its buyout of Keaton Energy. 

The Vanggatfontein Colliery
The Vanggatfontein Colliery

Private sector seen as key to catalysing much-needed infrastructure revival

By: Donna Slater     25th February 2022 A focus on labour-intensive practices, increased partnership between the public and private sectors and rechannelled funding methods for infrastructure roll-out in South Africa are required to help reduce unemployment, build the economy and improve local skills, according to a panel of experts... 

Engineering News and Mining Weekly cover image

South Africa targets cable thieves holding economy to ransom

By: Bloomberg     24th February 2022 South Africa’s government intends making it mandatory for all metal traders to get licenses and prevent them from dealing in cash, a measure aimed at combating a massive illegal trade in cables and wiring stripped from rail, power and telecommunication lines. Traders will also be required to... 

Progress made in disposal of stake in airline SAA

By: Reuters     24th February 2022 The South African government said on Thursday that further progress had been made in the disposal of 51% of shares in national airline South African Airways to the Takatso Consortium. A cabinet statement read: "The Sales and Purchase process has now been concluded and signed by the Department of... 

Sanral warns of N1 Northbound lane closures for sinkhole rehabilitation

By: Darren Parker     23rd February 2022 The South African National Road Agency Limited (Sanral) issued a notification to road users on February 23, advising them to expect lane closures on the N1 Northbound between Botha avenue and the N1/R21 Flying Saucer interchange, in Centurion, to allow for rehabilitation work on a sinkhole. The... 

Minister reiterates ‘tough love’ approach to SOE fiscal dependence 

By: Marleny Arnoldi     23rd February 2022 Finance Minister Enoch Godongwana has reiterated his commitment to clamp down on State-owned entities (SOEs) that are draining the fiscus with bailouts. Delivering his Budget 2022 speech on February 23, he pointed out that more than R308-billion had been directed towards bailing out failing SOEs. 

An SAA aircraft

Godongwana says ‘tide is turning’ but mulls new fiscal anchor to fully restore sustainability  

By: Terence Creamer     23rd February 2022 Finance Minister Enoch Godongwana insists South Africa’s fiscal sustainability tide is turning but also signalled on Wednesday that government is considering the introduction of a new “fiscal anchor” to consolidate the modest improvements made to date and to restore fiscal sustainability over the... 

Finance Minister Enoch Godongwana
Finance Minister Enoch Godongwana

Godongwana urges Eskom to sell assets as he confirms R88bn in new support 

By: Terence Creamer     23rd February 2022 Finance Minister Enoch Godongwana confirmed that Eskom will receive a further R88-billion in government support until 2025/26 and that a comprehensive debt solution was still being explored for the financially unsustainable State-owned electricity producer. The support comes in addition to the... 

An image of Eskom's head office

Solidarity union to take action against SOE looters after defeating Denel in Court again

By: Rebecca Campbell     23rd February 2022 The Solidarity Trade Union has announced that it will pursue criminal charges against those responsible for theft and mismanagement at the country’s State-owned entities (SOEs). It did so in a statement reporting its latest legal success, on behalf of its members, against the Denel defence... 

Eskom considers selling assets as bailout prospects fade

By: Bloomberg     23rd February 2022 Eskom Holdings, South Africa’s indebted power utility, is considering selling distribution assets as prospects of the government taking over about half of its R392-billion obligations dim, people with knowledge of the matter said. State-owned Eskom, which supplies almost all of South Africa’s... 

Image of an Eskom branded vehicle

South Africa's changing electricity supply industry  

18th February 2022   Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about the release of the Electricity Regulation Amendment Bill and the Electricity Pricing Policy for public comment; changes that are under way at Eskom to align it with the future structure of the electricity... 

Terence Creamer image
South Africa's changing electricity supply industry

At least R3bn needed to upgrade Transnet Freight Rail’s security infrastructure 

By: Darren Parker     16th February 2022 State-owned Transnet Freight Rail (TFR) will need at least R3-billion to upgrade its security infrastructure across all of its corridors, with about 80% of this to be funded through external means, TFR North Corridor managing executive Thozama Mokoena revealed to Engineering News & Mining Weekly... 

A photo of a moving Transnet train
Transnet Freight Rail has seen a 177% increase in criminal incidences over the past five years

South Africa weighs taking on Eskom’s $26-billion debt, IMF says

By: Bloomberg     14th February 2022 South Africa’s government is considering taking over part or all of Eskom Holdings’ R392-billion debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund. Eskom’s financial position is of particular concern and requires a... 

De Lille appoints CDC to assess Parliament fire damage

By: Darren Parker     14th February 2022 The Department of Public Works and Infrastructure (DPWI) has appointed Eastern Cape provincial government-owned entity the Coega Development Corporation (CDC) to conduct further detailed assessments and testing of material strength at the fire-damaged Parliament buildings. The appointment, on... 

A photo of the parliament buildings on fire with firefighters working to extinguish the blaze
Photo by Reuters
The New Assembly Building was declared unsafe after the fire
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