The CAIA Executive Director and Chairman of the CAIA Board met with members of the Eskom Executive Committee on 18 January 2019. CAIA also attended a special meeting of the BUSA Energy Subcommittee on the same day, who were addressed by members of the Eskom Sustainability Task Team. Both meetings were constructive. For your information please fi nd the CAIA submission and talking points raised during these meetings.
Eskom is in a serious crisis and in order to obtain the trust of South Africans and to regain credibility, Eskom and its shareholders need to show demonstrable steps and publicise what
they are doing to address the situation - how costs are being cut, corruption dealt with and the outcome of forensic audits need to be published and appropriate decisive action taken.
According to Eskom’s 2007 Annual Report, there were 32,674 employees, while the 2018 Integrated Report dated 31 March 2018 indicates that Eskom had 48,628 employees, showing an increase of 15,954 employees over that period (~49%). It is reported that Eskom currently produces only about 4% more electricity than it did in 2006. When one compares the number of employees and the amount of electricity produced by Eskom, there needs to be drastic action taken in reducing staff and other costs, which is unavoidable in this crisis, and makes business sense as part of a radical cost cutting programme.
Industry and the consumer in South Africa cannot tolerate increase upon increase of double digits over inflation.
Radical surgery is required with a very sharp scalpel! Tinkering while Rome is burning is not going solve the problem.Your membership level does not allow you access to this content. If you feel you should have access on the below document, please log-in or Contact Us
Eskom Engagement_January 2019