Scopa berates ‘unfit’ Eskom board for ‘showing them middle finger’

South African Airways (SAA) will be the next troubled state-owned enterprise (SOE) to answer tough questions in parliament today after the standing committee of public accounts (Scopa) gave a verbal lashing to Eskom’s board this week.

Yesterday, Scopa chairperson Mkhuleko Hlengwa did not mince his words when he berated the power utility’s board for not showing up to a planned meeting to update parliament on its turnaround strategy. Hlengwa concluded his response to the board’s no-show by calling it unfit.

“You can’t come to parliament and we bail you out, then, when you have to account, you show us the middle finger. So, as far as I’m concerned, that board is not fit and proper,” said Hlengwa.

Scopa later issued a statement saying it resolved to instruct the Eskom board to explain why it failed to appear before Scopa yesterday.

Meanwhile, business rescue practitioners at SAA, together with Public Enterprises Minister Pravin Gordhan, are due to give an update on efforts to save the entity following two bank bailouts it received in the last two months.

Democratic Alliance MP and member of Scopa Alf Lees said SA deserved an explanation on how the airline kept receiving bailouts when it was under business rescue. He also wanted clarity on the exact role of the practitioners in the decision-making process.

“We anticipate that we will get some kind of information, or a report, on what has been done by the business practitioners and why they believe SAA is saveable, or rescuable,” said Lees.

“[Gordhan] is also expected to attend and we need to understand from him why they continue to give, or facilitate, massive bailouts for SAA. We are referring to the Development Bank bailout as well as the R2 billion they got from commercial banks. That R2 billion was burned through by 25 January, so that lasted just under two months and the loans from the commercial banks are expected to run out by the end of March.”

President Cyril Ramaphosa came under fire last week for not mentioning the state of SOE board appointments during his State of the Nation address.

In his speech, Ramaphosa indicated that load shedding was unavoidable and reaffirmed plans to split Eskom into three entities.

In a scathing statement by Scopa yesterday, the committee said it was dissatisfied with Eskom executives’ presentation in parliament yesterday, saying it failed to address recommendations given by the parliamentary body on deviations and expansions.

“The presentation responded to the recommendations in general, but lacked the specific details requested by Scopa.”

Scopa requested Eskom to submit detailed responses to the recommendations, including the status of the vetting of employees and financials by Wednesday next week.

It referred to the board’s absence at yesterday’s meeting as reckless, irresponsible and careless.

Lees said he was somewhat satisfied with Eskom’s presentation yesterday in terms of the progress report on maintenance and repairs at power stations.

“With regard to the presentation they gave, there was a renewed enthusiasm among the executives … there was an actual report on what is being done, particularly with the design faults on Medupi and Kusile power stations where for the first time, of the one of the boilers is in the process of being modified after years of talking about plans to fix it, so the unit can run at full capacity.”

Scopa scheduled a follow-up meeting with Eskom for 4 March.

For more news your way, download The Citizen’s app for iOS and Android.