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State Companies News

Eskom board probes allegations of impropriety against acting chief executive

By: African News Agency 30th March 2017 Eskom's board on Thursday said it had initiated a probe into allegations that acting CE Matshela Koko’s stepdaughter’s shareholding in Impulse International – a company which won nine tenders from the power utility worth a billion rand. In a statement Eskom said its “board resolved, in its... →

Eskom to fast-track socioeconomic assessments for five coal stations facing closure

By: Terence Creamer 30th March 2017 Public Enterprises Minister Lynne Brown has called on Eskom to urgently complete socioeconomic impact assessments for its coal-fired power stations in Mpumalanga, five of which having been earmarked for decommissioning over the coming five years, owing to flat demand and the introduction of new... →

TPT awarded multipurpose terminal depot licences

By: Natasha Odendaal 28th March 2017 The South African Revenue Service has granted Transnet Port Terminals (TPT) new depot licences for all its multipurpose terminals (MPTs) for the packing and unpacking of containers for all commodities, including agri, mineral and mining bulk products. This enables State-owned TPT to efficiently... →

BLSA calls for cool heads after Gordhan’s mid-roadshow return

By: Natasha Odendaal 28th March 2017 Business Leadership South Africa (BLSA) has cautioned on the consequences of the ill-advised, “unexpected and unexplained” request by President Jacob Zuma for Finance Minister Pravin Gordhan to return to South Africa midway through an international investor roadshow to the UK and the US. The... →

Photo by Duane Daws
President Jacob Zuma and Finance Minister Pravin Gordhan

SAA losses climb to R4.5bn

By: African News Agency 27th March 2017 The losses of the already cash-strapped South African Airways (SAA) has rapidly increased to R4.5-billion, documents submitted to Parliament’s standing committee on Finance revealed. “This new figure of R4.5-billion is significantly higher than the R3.5-billion revealed ten days ago and the... →

Gordhan flying back to SA tonight – Treasury

By: News24Wire 27th March 2017 Finance Minister Pravin Gordhan will comply with President Jacob Zuma’s order and return to South Africa on Monday evening. That is according to Treasury spokesperson Yolisa Tyantsi, who told Fin24 on Monday that arrangements were being made to fly him back to South Africa later on Monday evening. →

Photo by Duane Daws
Finance Minister Pravin Gordhan

Zuma orders Gordhan home from UK talks with investors

By: African News Agency 27th March 2017 President Jacob Zuma on Monday ordered Finance Minister Pravin Gordhan and Deputy Finance Minister Mcebisi Jonas to abandon talks with foreign investors in the UK and US and return home, prompting the rand to fall amid fears of a Cabinet reshuffle. “President Jacob Zuma has instructed the... →

Photo by Reuters
Finance Minister Pravin Gordhan and Deputy Mcebisi Jonas

New public procurement legislation to take effect this week

By: Natasha Odendaal 27th March 2017 With the revised legislation governing public procurement processes coming into effect this week, stakeholders are expecting the impact of the radical economic transformation within public procurement processes to become clear in due course. Government repealed and replaced its Preferential... →

DA to ask public protector to investigate Eskom acting CEO’s R1bn deals to stepdaughter

By: African News Agency 27th March 2017 The Democratic Alliance will ask Public Protector Busisiwe Mkhwebane to launch an investigation into Eskom acting CEO Matshela Koko for allegedly awarding tenders worth R1-billion to Impulse International, a company of which his stepdaughter is a director, the party said on Sunday. “Impulse... →

Photo by Duane Daws
Eskom acting CEO Matshela Koko

Transnet offers voluntary severance packages to staff

By: Megan van Wyngaardt 24th March 2017 Transnet on Friday confirmed that it is offering voluntary severance packages (VSPs) to its management and bargaining unit employees to streamline its business and ensure the group’s long-term sustainability. The parastatal cited subdued global economic growth, including a weak economic outlook... →

Denel heads to court to dispel doubts over legality of Denel Asia JV

By: Natasha Odendaal 24th March 2017 Denel has taken to the High Court of South Africa in Gauteng to clear up doubts over the legal standing of Denel Asia, a joint venture (JV) with VR Laser Asia. The State-owned defence group on Friday applied to the High Court in Pretoria for an order declaring that it obtained approval to form... →

Photo by Duane Daws
Denel acting CEO Zwelakhe Ntshepe

Uncertainty over regulatory clearing account having an impact on Eskom

23rd March 2017 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about the implications for Eskom of the uncertainties surrounding the Regulatory Clearing Account. →

Uncertainties emerge over Eskom’s ability to claw-back expenses under the RCA.

EIUG supports Eskom plan for new pricing deals with power-intensive firms

By: Terence Creamer 22nd March 2017 The Energy Intensive User Group of Southern Africa (EIUG) believes there is policy, legislative and regulatory space to introduce new electricity pricing arrangements to help restart of idle mining and process-industry activities, as well as encourage new investments to absorb Eskom’s surplus,... →

S&P affirms Eskom rating on ‘extremely high’ likelihood of govt support as liquidity weakens

By: Terence Creamer 22nd March 2017 S&P Global Ratings has sustained a negative outlook on Eskom after affirming its 'BB-' sub-investment-grade rating this week, pointing to the State-owned electricity utility’s weakening liquidity position as a result of a “lower-than-expected” tariff increase for 2017/18. On February 23, the... →

AFD, Eskom sign R6bn financing deal

By: Megan van Wyngaardt 17th March 2017 To further support its investment in the extension and reinforcement of its power transmission grid, State-owned Eskom has signed a R6-billion multi-tranche framework agreement with the French Agency for Development (AFD). “This multi-tranche loan facility will contribute towards Eskom plans to... →

Eskom initiates talks on triggering government support to cover IPP costs

By: Terence Creamer 15th March 2017 Eskom has written to the signatories of the Government Support Framework Agreement (GSFA) – which guarantees support for the State-owned utility in meeting its obligation to buy electricity from renewable-energy independent power producers (IPPs) – to discuss a possible triggering of government... →

Photo by Duane Daws
Eskom interim CEO Matshela Koko

Outa, Untu speak out against appointment of interim PRASA board

By: Anine Kilian 14th March 2017 The United National Transport Union (Untu) does not believe the newly appointed interim board of State-owned Passenger Rail Agency of South Africa (PRASA) will be able to save the entity. Transport Minister Dipuo Peters on Monday announced the appointment of the interim board, which will be... →

S&P Global sees higher use of guarantees by Eskom as ratings ‘pressure point’

By: Terence Creamer 14th March 2017 S&P Global warns that contingent liabilities associated with guarantees to State-owned companies (SoCs) such as Eskom have emerged as a “pressure point” for South Africa’s sovereign rating, which the agency currently has at one notch above junk, but with a negative outlook. The negative outlook... →

PRASA gets interim board in attempt to bring stability

By: Natasha Odendaal 13th March 2017 Transport Minister Dipuo Peters has appointed an interim board to stabilise the ailing Passenger Rail Agency of South Africa (PRASA) and guide the parastatal until a new, permanent board is selected. Peters last week dissolved the entire PRASA board on the back of “declining performance, lack of... →

Photo by Duane Daws
Transport Minister Dipuo Peters

Molefe files urgent application over PRASA board dissolution

By: News24Wire 13th March 2017 Former PRASA chairperson Popo Molefe has filed an urgent application to the High Court in Johannesburg to have the decision to dissolve the board of the Passenger Rail Agency of South Africa by the Minister of Transport set aside. Molefe, along with the other fired directors of PRASA, have... →

PRASA locomotives contractor paid ANC 'fundraisers'

By: News24Wire 10th March 2017 Less than a week after PRASA made its first payment of nearly R500-million to the supplier of the controversial Afro4000 locomotives, the latter's managing director paid an amount of R14.3-million into the account of a lawyer who had introduced himself as a fundraiser for the African National... →

Impact of Africa on South Africa’s economic performance ‘underestimated’ – IMF

By: Terence Creamer 9th March 2017 Sub-Saharan Africa (SSA) is currently the main destination for South African exports and its influence on the economic performance of South Africa is being “underestimated by many commentators”, International Monetary Fund (IMF) senior resident representative in South Africa Dr Montfort Mlachila... →

Peters fires PRASA board

By: African News Agency 8th March 2017 Transport Minister Dipuo Peters on Wednesday, dissolved the Passenger Rail Agency of South Africa (Prasa) board with immediate effect. This was revealed in Parliament when acting transport department director general Mathabatha Mokonyama read out a letter from Peters during a portfolio committee... →

Brown calls for Eskom to bring Dentons report to Parliament

By: African News Agency 8th March 2017 Eskom should be called before Parliament to brief MPs on the Dentons report, Public Enterprises Minister Lynne Brown said on Wednesday. “Eskom should come and run you through the report,” the minister told the portfolio committee on public enterprises after she was asked for her view on the... →

Photo by Duane Daws
Public Enterprises Minister Lynne Brown

Musina-Makhado SEZ to revive steel industry

By: Megan van Wyngaardt 6th March 2017 The South African Energy and Metallurgical Cluster has entered its implementation phase, following the signing of a R40-billion operator agreement between the State-owned Musina-Makhado Special Economic Zone (SEZ), where the cluster resides, and the Shenzhen Hoi Mor Resources Holding Company.... →

One regional water utility for the Eastern Cape

By: Robyn Wilkinson 3rd March 2017 Eastern Cape State-owned water utility Amatola Water is leading the charge in the advocacy of and planning activities required to ensure that a single regional bulk water utility is realised in the Eastern Cape, in line with the Department of Water and Sanitation’s (DWS’s) institutional reform... →

S Africa aims to improve poor maintenance of railway infrastructure

By: Tasneem Bulbulia 3rd March 2017 The inability of local rail infrastructure to attract sufficient revenue has led to a deficiency in the required sustaining capital necessary for its maintenance, says professional services consultancy WSP|Parsons Brinckerhoff infrastructure and transportation divisional director Vishaal... →

MANDATORY MAINTENANCE
Several projects have been implemented or are under way to improve rail infrastructure in South Africa

Photo by Bloomberg
MANDATORY MAINTENANCE Several projects have been implemented or are under way to improve rail infrastructure in South Africa

I am still PRASA CEO – Collins Letsoalo

By: News24Wire 1st March 2017 Collins Letsoalo believes he is still the acting CEO of PRASA even after the board announced his dismissal on Monday. "I was never fired, I didn't even get a letter. I was informed through media reports," Letsoalo told ANN7 in an interview on Tuesday. →

Deadlock broken between Eskom and IPPs, Joemat-Pettersson insists

By: Terence Creamer 28th February 2017 Energy Minister Tina Joemat-Pettersson says the “deadlock has been broken” between Eskom and the renewable-energy independent power producers (IPPs), with the National Energy Regulator of South Africa (Nersa) confirming its willingness to consider an application from the State-owned utility... →

Energy Minister Tina Joemat-Pettersson

PRASA fires acting CEO, Collins Lestoalo

By: African News Agency 27th February 2017 The Passenger Rail Agency of South Africa (PRASA) has fired the acting group chief executive, Collins Letsoalo, with immediate effect following a unanimous board decision to terminate the secondment at the rail agency. This comes after the controversy behind the remuneration package of Letsoalo... →

Public Works implements remedial plan at Bluff Naval base

By: Megan van Wyngaardt 24th February 2017 The Department of Public Works (DPW) has appointed a team to prepare a remedial plan for the faulty pump station at the Bluff Naval base, in Durban, following an incident last week in which six people died. The deceased, three contract workers and three South African National Defence Force... →

Treasury agrees, in principle, to substantial capital injection for SAA

By: Natasha Odendaal 22nd February 2017 The National Treasury on Wednesday announced it had agreed, in principle, to a substantial capital injection into troubled South African Airways (SAA); however, it could not confirm the amount or timeline for the capital injection. Treasury confirmed in the National Budget that, during 2017/18,... →

Sarec says Eskom dragging its feet in honouring Zuma’s renewables ‘injunction’

By: Terence Creamer 17th February 2017 The South African Renewable Energy Council (Sarec) claims that Eskom has yet to issue any updated budget quotes for projects that President Jacob Zuma said in his State of the Nation address (Sona) would proceed, following a protracted impasse that arose as a result of the State-owned utility’s... →

Mark Pickering

ABB hopeful Zuma’s IPP declaration will unlock orders for locally assembled inverter stations

By: Terence Creamer 16th February 2017 The head of ABB South Africa is hopeful that renewable-energy-related orders, which all but dried up in 2016 as a result of Eskom’s refusal to sign new power purchase agreements, will resume in light of President Jacob Zuma’s announcement that the State-owned utility will sign all outstanding... →

ABB South Africa CEO Leon Viljoen

Busa worried about Sona violence, agrees greater economic transformation is needed

By: Megan van Wyngaardt 10th February 2017 The events that unfolded at Thursday’s State of the Nation Address (Sona) by President Jacob Zuma, are of serious concern and undermine the country’s progress in and towards open, transparent and constructive dialogue, Business Unity South Africa (Busa) said on Friday. “Democracy depends on... →

Sector charter for the defence industry agreed

By: Keith Campbell 10th February 2017 Stakeholders in the country’s defence industry have adopted the Defence Sector Charter, which is intended to promote black economic empowerment (BEE) in the sector. The decision was taken at a recent stakeholder consultation session, which was attended by industry experts, suppliers, trade union... →

IDC hopes to salvage wind-tower plant, but warns liquidation can’t be ruled out

By: Terence Creamer 8th February 2017 The Industrial Development Corporation (IDC) is hoping to salvage the domestic manufacturing capability established to produce wind-tower sections in the Eastern Cape that was set up in response to government’s demand for higher levels of local content in the renewable-energy sector. However, it... →

Sections being manufactured at DCD Wind Towers plant, which has been shut since December

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