Business Leadership South Africa (BLSA) has called on government to announce a “breakthrough set of restructuring plans” for loss-making power utility Eskom, describing the State-owned firm’s current state of affairs as “dire”.
The business organisation emphasised on Friday that these plans had to include structural, operational and financial changes that would reduce costs, create sustainable debt levels and make Eskom a secure and viable enterprise that could sustainably provide energy at the lowest possible cost.
“The stability of Eskom should be above politicking and personal attacks. What Eskom needs is a clear plan coupled with strong leadership both at executive and board level,” BLSA said.
The organisation indicated its firm backing of the appointment of Eskom chairperson Jabu Mabuza as Eskom interim CEO, as announced earlier this week.
“We believe that Mabuza has all the requisite qualities and experience to lead Eskom while the utility searches for a permanent replacement to outgoing CEO Phakamani Hadebe,” BLSA stated.
The organisation also welcomed the appointment of South African Institute of Chartered Accountants CEO Freeman Nomvalo as Eskom chief restructuring officer, who will be overseeing the unbundling of the debt-laden utility into three entities of generation, distribution and transmission.
“We acknowledge his mammoth task but more importantly, implore him to act with diligence, speed and decisiveness,” emphasised BLSA.
BLSA prompted the Eskom board to expedite the search for and appointment of a permanent CEO within the stipulated period, indicating that it believed that this would help in strengthening the “slow, but definite recovery that has begun at the utility”.
Moreover, BLSA encouraged all stakeholders, including the shareholder, labour, staff and customers to support Eskom in regaining its strong status, as this would positively impact energy security, foreign investment and much-needed jobs.