Eskom crisis: State of disaster ‘risks exposing SA to danger of further looting’ of state funds

As South Africa continues to reel from devastating bouts of Eskom blackouts, experts yesterday said the ANC NEC lekgotla-proposed national state of disaster is a signal of a government overwhelmed by the electricity crisis.

While the national state of disaster would usher in an emergency procurement regime and ease stringent policies at the power utility, a political analyst warned of a possible opening of the corruption floodgates, last seen at the height of the Covid pandemic.

Reflecting on the outcome of the ANC NEC lekgotla, party secretary-general Fikile Mbalula said the gathering had encouraged President Cyril Ramaphosa “to declare a national state of disaster, which will also require that the ANC reconnects with our communities and society, as the ANC does not have the monopoly of ideas”.

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“We therefore, call on all of society to work with us in progressively solving the challenge, because it affects all of us – in particular the poor and the working class.”

Cabinet was also directed “to study in detail the obstacles in delivering infrastructure, vandalism and counterrevolutionary tendencies, with a view to increase infrastructure investment whilst strengthening the capability and capacity of the state”.

Eskom the ‘main site’ of corruption in SA

With its budget negatively impacted by ballooning municipal debt and owed R4.8 trillion at national level, embattled Eskom requires 46 000 megawatts (MW) to be added to the 26 000MW current capacity.

Quoting the late former Eskom chair Jabu Mabuza, independent political analyst Sandile Swana said Eskom was “the theatre – the main site of state capture and corruption in South Africa”.

“The introduction of the national state of disaster – a regime where the rules of procurement are totally eliminated – is a wide-open door for theft by an assortment of suppliers, who may be funders of the DA [Democratic Alliance] and the ANC, in the light of the upcoming 2024 elections.

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“[It] is set to target procurement across the board – spares and equipment for Eskom.

“The delays in Kusile and Medupi power stations and many failures at Eskom revolve around the misbehaviour of Eskom employees, suppliers and ANCaligned companies, which include Chancellor House [a mining, engineering, energy and information technology holding company].

“We must accept that, as elections come up, corruption also escalates in order to have surplus funds for electioneering,” he said.

ANC ‘failed’

Sceptical about Ramaphosa’s power plan, he said: “As deputy president, he chaired the war room at Eskom, but failed consistently to turn the situation around. There has been no turnaround during his tenure as deputy or as president.

“The national state of disaster is an honest admission by the ANC and the government of having failed in managing the crisis.”

Policy analyst Dr Nkosikhulule Nyembezi said the ANC’s decision to move for a declaration of a national state of disaster seems more apposite to the general expectation of the public than ever.

“Using a national state of disaster to deal with Eskom’s woes will expose the country to the risk of further looting of state funds, especially ahead of the elections.”

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University of Johannesburg associate economics professor Peter Baur said implementing a state of disaster may accelerate the repair of damaged national infrastructure or begin the long process of turning the situation around.

“If appropriate strategies directed from the disaster management committee are applied, many legislative, political, administrative or bureaucratic hurdles, could be crossed rapidly by adjusting solution-based strategies to solve the energy crisis.”

20 years of bad policy choices

Alternative Information and Development Centre economist Dominic Brown said the implementation of a national state of disaster “should allow for expediting policy decisions required to address load shedding”.

“Critically, this includes liberating the resources needed to procure diesel, which Eskom can purchase at a cheaper cost, if the SA Revenue Service and the department of mineral resources and energy provide it with the licence to buy diesel from wholesalers.

“It is also essential that there should be a public disclosure of all contracts and an attempt to insource maintenance capacity to mitigate against price gouging and inflated outsourcing costs,” he said.

Brown said the energy crisis and the Eskom crisis were “rooted in more than 20 years of bad policy choices”.

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Info
Load shedding increased to stage 5

• Eskom increased load shedding to stage 5 from midday to 9pm yesterday, when stage 6 was implemented until 5am today.
• Thereafter, stage 5 is expected to be implemented continuously until further notice.
• “In the past 24 hours, six generating units have suffered breakdowns, of which a unit each at Duvha and Hendrina [power stations] have not yet returned to service.
• “In addition, a generating unit each at Matla and Arnot had been returned to service.
• “There is a delay in returning a generating unit each at Duvha, Kendal, Grootvlei and Kriel power stations,” Eskom said.
• At least 18 123 megawatts of generating capacity is unavailable due to breakdowns, with a further 4 654MW out on maintenance.
• “Eskom requests members of the public continue assisting by reducing usage and to sparingly use electricity,” the power utility said. – SAnews.gov.za