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State Companies News
Cosatu, SACP to meet after Cabinet reshuffle
By: African News Agency 31st March 2017 Leaders of two tripartite alliance members – the Congress of South African Trade Unions (Cosatu) and the South African Communist Party (SACP) – are scheduled to hold separate meetings after a late night Cabinet reshuffle by President Jacob Zuma. None of the SACP leaders in Zuma’s Cabinet was... →
Sugar industry reduces haulage costs by R38m
By: Robyn Wilkinson 31st March 2017 The South African sugar cane industry should be congratulated on the progress it has made over the past ten years in improving the efficiency of its haulage system in line with the South African National Roads Agency’s Road Traffic Management System (RTMS), says South African Cane Growers’... →
New agroprocessing-, metals-focused Ipap to be released in April
By: Schalk Burger 31st March 2017 A new Industrial Policy Action Plan (Ipap) focused on supporting the agroprocessing and metals industries, including foundries and the casting sector, will be released in April, Department of Trade and Industry (DTI) director-general Lionel October says. “We are aiming to strategically support... →

LIONEL OCTOBER The DTI is emphasising the importance of the fourth industrial revolution and modernising and upgrading the metals and casting industries
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... →

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. →

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... →

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... →

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... →

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. →
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... →

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... →

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... →

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
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... →

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... →

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... →

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