View Section: DEBATE ON URGENT MATTER OF NATIONAL PUBLIC IMPORTANCE: ESKOM ENERGY CRISIS :: People's Assembly
PROCEEDINGS OF THE NATIONAL ASSEMBLY (Thursday, 21 February 2019)
DEBATE ON URGENT MATTER OF NATIONAL PUBLIC IMPORTANCE: ESKOM ENERGY CRISIS
← FOR PROVINCIAL AND LOCAL GOVERNMENT:
M S MALATSI. →
Ms N W A Mazzone 21 Feb 2019 hansard
Deputy Speaker, South Africa is now in an official hostage situation. We have a situation where two belligerent parties, one being Eskom and the other being the ANC are holding the South African Republic, the South African economy and every person within South Africa a security in the hostage drama. We as South
Africa have a metaphorical knife to our throat and we are being forced to pay a never-ending ransom to Eskom or else the throat will be slit and the results will be a full out black out and the death of South Africa as we know it.
This is not overexaggeration and this is not panic peddling; this is the absolute reality. We are teetering on the very edge, we should be absolutely terrified and exactly what would happen if this crisis worsens. As government, every single effort and every single action should be focused on nothing other than averting this crisis. And to anticipate any possible responses, I would say no because enough has not been done and enough is not being done to safe our country.
The date was 11 December 2014, and the Deputy President and the Leader of Government Business was one Mr Cyril Ramaphosa. The player needed to turn around Eskom. It was said that Mr Ramaphosa will oversee this, but the plans failed dismally. The date was 11 July 2017, and the Deputy President and the leader of government business was one Mr Cyril Ramaphosa. A new plan has been discussed
to turn around Eskom, increase revenue and reduced spending, but plans failed dismally. The date was 31 January 2018, and the Deputy President and the leader of government was Mr Cyril Ramaphosa, and Fitch downgraded Eskom. Eskom vowed to implement a turnaround strategy, we waited, and Eskom was glowing its way back.
I think we can see that the plan has failed dismally. The date was 2 December 2018, the President was Cyril Ramaphosa, and the leader of government was Mr David Mabuza. Rolling blackouts have rocked the country yet again. A new turnaround strategy was planned for implementation, and I think we can all agree. The plans have failed dismally. I have watched year after year, Eskom board after Eskom board, rolling blackouts after rolling blackouts, Eskom price increase after Eskom price increase. Eskom just gets worse. As a state-owned entity, the company simply cannot function. The ideological battles within the ANC are now not only ripping the party itself apart, it is causing an economic crisis, the likes of which this country has never seen.
The DA has not just sat back and complained, we have taken proactive steps of providing solutions, providing legislation, requesting countless times to sit around the table and be of service. We have said it so many times. This crisis transcends the bounds of politics; the very future of our country is at stake here. The kind of overhaul needed at Eskom means splitting Eskom into a generation entity, completely independent of the transmission and distribution entity. The generation entity should be privatised over time, where well- functioning power stations can be offloaded to the private sector that would do just that, create cheaper and more sustainable energy.
Our Bill was in fact gazetted just yesterday for public comment. And it is the first real concrete step in changing the Eskom structure. Let's talk a little bit more action. The Minister of Finance, Tito Mboweni announced another set of bailout for struggling state- owned entities yesterday in his Budget Speech. A massive R69 billion lifeline has been promised to Eskom over the next three years.
Unfortunately that is not nearly enough to keep the sinking boat afloat. The truth is that Eskom has hit an iceberg in the form of a mounting debt of R419 billion and counting - an oversized workforce, low productivity, lack of critical skills, brand-new faulty power stations, scar tissue from years of corruption, maintenance backlogs are just some of the problems that faces the entity. When one adds the municipal debt that is owed to Eskom, the sinking ship had only one way to go - and that is straight down.
The financial lifeline and the split of Eskom into three entities will not be enough to save Eskom. Even with the three units, there will still be only one board calling the shots. What Eskom needs is a complete overhaul, not a mere rejig. Now, we need to face the very harsh realities, state capture hit very zenith during the term of this Parliament. It was devised, executed and almost completed under the watch of the then President, Jacob Zuma and his entire Cabinet.
President Ramaphosa has himself said that this is known as the nine wasted years - nine wasted years indeed; but
let me tell you what is also wasted, six opportunities to vote against President Jacob Zuma in a motion of no confidence. Six times, the ANC voted in favour of keeping him and they cheered, and sang, and gave him a standing ovation, and every time these motions were defeated. [Interjections.] Every single member of the ANC in this House is to blame for capture. [Interjections.] That is the politics of the stomach completely winning over the politics of the people.
I have to laugh when I hear statement made in the media such as, "We had no idea it was this bad, or "what, should we have acted sooner?" Yes, you should have acted immediately, but you see what would have happened if you acted immediately with those pesky, "smallanyana" [little] skeletons, we would have no where to go and hide. It simply cannot be that every single member of the executive did not know what was happening under your very noses. You aided and abated this selling of piece by piece of our country, and shame on you all! [Interjections.]
The ANC government is taking the people of South Africa for fools one too many times. South Africans are politically astute and we will not fall for this games and lies again. It is not normal and never should it be that rolling blackouts rule our lives. The time has come for South Africans to take back their power. The date is 9 May 2019, where Cyril Ramaphosa will no longer be the President of South Africa. [Interjections.] The people of South Africa have taken back their power. The date is 10 May 2019, where the President will be one, Mr Mmusi Maimane. [Interjections.]
Hon Deputy Speaker?
Yes, hon member. Hon member, please take your seat.
May I stand on a point of order?
... on an offering. [Interjections.]
Yes, I think we have enough psychiatrists to offer services to the previous speaker. [Interjections.] I am just offering; and it is free. [Interjections.]
Please take your seat, rra. [Interjections.] That is not a point of order. [Interjections.] Yes, hon member?
Not only is it not a point of order, but it is casting aspersions on a member of this House. We advise that the hon Minister should withdraw the statement that he has just made. [Interjections.]
Okay, we will come back to you just now. Proceed, hon member.
Nks L A Mnganga-Gcabashe hansard
Mhlonishwa Sekela Somlomo namalunga ahloniphekile aleNdlu, nezihambeli zayo, kanye
nabobonke abantu bakuleli laseMzansi Afrika, Siyanibingelela.
Kulesisikhathi esinzima esibhekene naso sezinkinga ngokulethwa kukagesi [load shedding] yinkampani kahulumeni u-Eskom. Sicela ukuthi sonke njengezakhamuzi zalelizwe sibheke ukuthi lesi simo sisilungisa kanjani ngokubambisana.
Singamalunga ezinhlangano ezahlukene zezepolitiki, ezenkolo zonke,izinhlangano zophakathi, ezamabhizinisi, noma ngabe sihlala emadolobheni amakhulu noma namancane, ezindaweni zasekhaya, emaflethini, emalokishini emahostela imbala kanye nasezakhiweni. Ukuphakwa kukagesi akukhethi bala lamuntu, ngakhoke sonke siyathinteka futhi yingako kufanelekile sazi ukuthi ugesi olethwa emakhaya ethu, emabhizinisini, kwizimboni, emasontweni, ezikoleni, emahovisini konke lokhu kwenziwa ngemali. Lemali kufanele yenze nomsebenzi wokugcina izindawo eziphehla ugesi zikwazi ukusebenza ngendlela eyiyo zisimamiswe(Maintenance). Uma ugesu ungakhokhelwa ukulethwa kwezidingonqangi zethu ngeke kuqhubeke kahle,
ngoba phela yonke imisebenzi yokwethulwa kwezidingonqangi idinga imali.
Sicela bonke abantu bakithi abanezikweletu zikagesi basabele kwikhwelo likaMengameIi uRamaphosa likaThuma Mina,ngakho ke sithi thuma mina ngokukhokhela ugesi.. Amakhasimende asindwa ukukhokhela ugesi weMeter siyawakhuthaza ukuthi ashintshele kugesi wekhadi ngoba wona uwusebenzisa ngendlela ekalwe nguwena mthengi, futhi uwuthenga ngokwamandla onawo.
Lolu hlelo ngoluka wonke wonke, alukhethi ngezinga noma ngemiholo yabantu. Ngingasho nje ukuthi ngisho noSotswebhu Omkhulu walendlu umhlonishwa Jackson Mthembu naye washintshela kugesi wekhadi futhi maningi amalunga alendlu nawo asebenzisa wona logesi wekhadi,
Lokhu akuyi ngokuthi uhlalaphi, ngoba ngisho nabahlala ezindaweni ezaziwa ngama suburbs, ngoba nakhona baningi asebashintshele kugesi wekhadi. Lo gesi wekhadi usiza ngoba uwena muntu okwaziyo ukuzikalela imali ofuna ukuyikhokha ngogesi wakho.
Sithanda ukugqugquzela leyo miphakathi elethelwa ngqo ugesi ngu-Eskomi ezindlini zawo njengezindawo zaseSoweto nezinye izindawe eNingimu Afrika ziyokhokhela ugesi wazo futhi bayoxoxisana no-Eskom ngohlelo olungenziwa lokukhokhelwa kwezikweletu zabo kancane kancane, ngoba thina singuKhongolose siyazwelana nabantu bakithi. Njengoba abanye babantu bengakhokheli ugesi futhi bengayi nokuyocela ukuthi bakhokhele izikweletu zabo kancancane bavimbela eminye imiphakathi engakafakelwa ugesi ukuthi iwuthole nayo ngoba ayikho imali engenayo, iyaphuma kuphela ngokuphakwa kukagesi njengoba beqhubeka nokusebenzisa ugesi ongakhokhelwe.
Nalabo abaphakelwa ugesi ngoMasipala futhi okuyibo abaqoqa imali kagesi egameni lika Eskom, okanye bewuthenga ku-Eskom ngqo, sithi oMasipala mabakhokhele izikweletu zabo ngokunjalo kanti nathi esiwusebenzisayo esisezindaweni zoMasipala sikhokhe ukuze oMasipala baqhubeke nokusilethela,futhi kufakelwe nabanye abasalindile.
Osomabhizinisi nabahlali ikakhulukazi abahlala emahostela nabo siyabacela basukumele phezulu bayokhokha, abanye
babo abenza imisebenzi yokushisela, abanye badayisa iziphuzo ezibandayo, kepha abawukhokheli ugesi abawusebenzisayo. Njengoba benza inzuzo ngamabhizinisi wabo,nenkampani kahulumeni iyadinga ukwenza imali ngogesi abawusebenzisayo.
Lokhu sikusho sikubhekise kuwona wonke amabhizinisi amakhulu namancane. Kukhona abaningi abaxhume ugesi ngokungemthetho, phecelezi izinyoka- nyoka,nakubona ngokunjalo sithi mabakuyeke lokho ngoba kunguntsontsha ugesi futhi kuyicala elifanele ukuboshelwa.
Lokhu kuphinde kube ingozi ezimpilweni zabantu, sibonile abantu abancane nabadala bebulawa ukushokwa izintambo zikagesi ezifakwe ngokungemthetho, futhi zishise imizi yabantu nempahla yabo. Okukhulu kakhulu futhi kuqede namandla okuphehlwa kukagesi kumaTransmissions ngoba asuke esephampa ngokungaphezulu komthamo ayekhelwe kona. Asiphindde sikubalule ukuthi ezokuphepha nokuvikeleka kubalulekile ezimpilweni zethu.
Yikona konke lokhu okwenza ukuthi u-Eskom asicimele ugesi izikhathi ngezikhathi [load shedding], okuyimisebenzi
yezinyoka-nyoka yokungakhokheli ukuxhunywa kanye nokuphakwa kukagesi ongakhokholwe, ngaleyo ndlela bawisa le nkampani kahulumeni u-Eskom ngokwenza njalo ngoba ukunakekelwa kwa kwama-Transmissions kudinga imali, yona kanye le okufanele ngabe bayayikhokha. Nangaphezu kwalokho futhi ivimbela ukwakhiwa kweziteshi zikagesi ezintsha ezingaphakela ezinye izindawo. Sonke masibike ngezenzo ezimbi zokuntshontshwa kukagesi, futhi sisukume sonke sibabaze sikhuze lo mhlola omubi kangaka.
Siyavuma ukuthi zikhona ezinye izizathu ezibe ngumthelela walesisimo esibhekene naso njenge nkohlakalo kanye nokungenzi kahle ngendlela ekwakhiweni ngayo kweziteshi zikagesi i-Medupi kanye ne-Kusile. Bakhona ozakwethu abasazokhuluma ngalokhu, kepha sithi kubantu bakithi sisazibophezele njenge-ANC njengoba sasenzile kusukela ngo 1994 sifakela abantu bakithi ugesi ababengenawo ngesikhathi sobandlululo.
Sithi phansi ngokuxhunywa kukagesi ngokungemthetho, sithi nje phansi ngezinyoka-nyoka phansi; sithi phambili ngokukhokhela ugesi phambili. Asikhokhele ugesi, siyabonga.
USekela Somlomo: Sesiphelile isikhathi sakho lunga elihloniphekile, mamela libomvu le liwashi angithi uyalibona sisi, lithi sekumele usuke manje lapho.
Mr N Paulsen hansard
Deputy Speaker, the Eskom debate has been completely hijacked to mislead our people, and we will quickly unpack and expose the sickness at the core of some of the mad proposals linked with the thievery that knows no bounds.
There is no unbundling that will happen without an intention to privatise Eskom and the process to privatise Eskom has already begun. To privatise state-owned entities, SOEs, especially those that are strategic, you collapse them, make them unworkable and frustrate the masses as is currently happening with load shedding. Then, once everyone is angry with the state, you present private investors as saviours. You will then have a situation where the fox will guard the henhouse and it will immediately become evident as the price of electricity will skyrocket.
Firstly, it is not a coincidence that the first thing that Minister Jeff Radebe did when he was appointed as Minister of Energy was to sign Bid Window 4 of the purchase power agreements for independent power producers, IPPs, despite all the evidence that it will cripple Eskom's liquidity position.
His brother-in-law, Patrice Motsepe, is heavily invested in renewable energy projects. Mr Motsepe owns some of the major renewable energy projects that have signed purchase power agreements. Just to mention a few, he is a 30% shareholder in the Ngodwana Energy project, an 11% shareholder in SA Mainstream Renewable Power, Kangnas, an 11% shareholder in Perdekraal East power, a 15% shareholder in Zolograph Investments which owns De Wildt power station, a 15% shareholder in Bokamoso Energy, a 15% shareholder in Zeerust, a 15% shareholder in Greefspan PV Power Plant, a 15% shareholder in Droogfontein 2 Solar, and a 15% shareholder in Waterloo Solar power.
These shares are disguised by layers of subsidiaries to create a web of deceit and almost all of them were signed
in Bid Window 4 for which Minister Radebe was solely responsible.
For Mr Motsepe to hold a press conference to try and give an impression that there is no corruption happening while we suffer load shedding is misleading. These projects are funded by Absa of Maria Ramos, Old Mutual chaired by Trevor Manuel and by Mr Motsepe's companies.
We have not even touched on IPP projects owned by President Ramaphosa through Pembani and a larger network web of companies meant to hide obvious shenanigans.
Secondly, Mr Cassim, the Eskom chief financial officer, CFO, during his delivery of the interim results in November last year, admitted that IPP costs averaged R2,12 per kilowatt, adding that Eskom needs support from government and the National Energy Regulator of SA, Nersa, to address the situation where Eskom buys electricity at higher prices but sells at regulated prices, less than 90%.
The madness of IPPs is to collapse Eskom's liquidity because if IPPs are cancelled today Eskom will have room to breathe. The ridiculous idea that Eskom's collapse was due to the incompetence of black engineers and managers is not surprising coming from someone who goes around replacing competent black people with white people. Black professionals, not only engineers, must take this as a taste of what is to come if they continue voting for the ANC government of President Ramaphosa and Minister Gordhan.
The battle for the control of energy generation has moved from Eskom to policy but in the immediate the most efficient solutions are the most obvious solutions. Firstly, cancel all IPPs; secondly, Eskom must take all its coal mines from private companies, develop a detailed register of assets and a state-owned coal company must operate all these mines; and thirdly, Eskom must build internal capacity, appoint black engineers, artisans and managers with decent and deserving salaries.
The EFF will not stand by and watch our strategic assets, built and maintained by our own money, get handed over to private and greedy monopolies. Thank you very much.
Deputy Speaker, flashback 2001, Eskom is named power company of the year at the Financial Times Global Energy Awards in New York. All of its 78 production units at the time were considered to be in good working condition. Today, just 18 years later, it is nothing short of a catastrophe. Eskom remains a veritable sword of Damocles hanging precariously over this country. To say that it is only dysfunctional would be a compliment.
When Eskom is not crippling the economy with rolling blackouts, it is extorting money from the citizenry with absurd electricity supply price increases. In short, Eskom holds South Africa hostage.
Now, besides Eskom's legendary maladministration, tender corruption and general lack of any sense of sound business practice, it also remains widely overstaffed - 32 000 in 2007 to 48 000 in 2018 with an associated cost
growing from 9,5 billion to 29,5 billion. Reportedly, it remunerates its staff at a level four times higher than the global average. It is no wonder they are perennially at Parliament or at Nersa with their begging bowls for additional taxpayer-funded relief. Hon Minister, with regard to that question, is the increase in human resources consistent with an increase in productivity?
Maintenance and plant renovations are a disaster. If our new coal-powered stations, which by the way will be two of the largest greenhouse gas emitters in South Africa, are online by 2025, it will be a miracle. I would request the Minister to inform this House that as of today's date how overbudgeted these two power stations currently are.
On the question of illegal free connections, it's not only the cost but it's also the cost of lives. Last week a three-year-old young child was electrocuted in my area because of illegal connections. What is government doing about it? What are law enforcement agencies doing about it?
Is there a silver bullet that will miraculously correct the multiple and continuing failures at Eskom? No! We do, however, trust that Eskom itself will now under its own directive of the board take immediate steps, which includes legal action to collect the debts owed to Eskom by looters, including former staff.
Lastly, for the sake of political expediency, let us not sacrifice the country. We need to get Eskom working, even if it means getting rid of staff. We have to get rid of staff that are excess in numbers. Let us all put the country first because without electricity there is no economy in South Africa. Thank you.
Hon Deputy Speaker and colleagues, let's start off by saying that I do not believe - and the NFP is very clear about this - it is Eskom that's the problem. It is the people who manage Eskom that are the problem, and if you don't deal with those that manage Eskom you are not going to deal with the challenges that Eskom faces.
Many, many years ago we established ... and we knew that we were going to have a serious problem with Eskom, firstly, with regard to maintenance. There was no budget set aside for maintenance and very little attention was given to maintenance. We were forewarned. We did very little or nothing about it.
Now the question is, why? Let me also say what we did. We got rid of many experienced engineers and things that worked at Eskom.
We brought in new human resources with very little or no experience and that is why we are sitting with the challenge at Eskom today.
Over and above that, in most SOEs, if not all I think, there is one common factor; and that common factor is fraud, corruption, maladministration and a lack of capacity. The question is, what exactly are we going to do about it?
Let me remind this House of those evergreen contracts, which continue to run as 30 to 40 year contracts, and that we did very little or nothing about.
Now, privatisation has a purpose and that purpose is to act in the interest of investors, not in the interest of the people that we serve. That is proven throughout the world.
Why can't we have a model where 51% is owned by the state and 49% by the private sector, so we are still in control as a country, in the interest of our people?
However, as the NFP we find that some of us are obsessed with this thing of privatisation and the question that arises is ... When somebody wants to buy shares or they want to buy a business or they want to take over an SOE, they can only do that because they know they are going to make profits. So the question is, why can't we make the same profits if it is an SOE? [Interjections.] The only thing we need to do is to make sure that we employ people with the capacity and with the integrity to be able to run these organisations, and we won't have this problem
ever again. So, I'm hoping that we learn from this and correct it. Thank you very much.
Indeed, hon Shaik-Emam the profit motive is a problem. Deputy Speaker and hon members, commenting on the Eskom crisis earlier, General Bantu Holomisa asks or makes a very pertinent point where he says:
Eksom's policy of blackmail seems to have paid off. Now that they have received bailout money, load shedding has vanished into thin air. Banana republic he asks or was it a ruse to get money for elections as the ANC did with Bosasa for its ANC Siyanqoba rallies? [Interjections.]
South Africans, you are the judges, we don't know. We are merely asking the questions for you to consider. The United Democratic Movement believes that a drive for investment in the energy infrastructure is critical for our development and poverty reduction in the country. We are all aware that we have serious gaps between energy demand and supply that South Africa was burdened with
from the colonial regime - apartheid regime. That being said, if the African National Congress had planned this properly, it was not going to take them 25 years to wake up to the reality of energy shortages.
The unbundling of Eskom while one of the most important and viable options is not necessarily a panacea to our energy shortages of challenges. We are of the view that we must move away from the idea that building more of the same will fix our problems. We must look into the development of a new sustainable energy infrastructure that can turn South Africa into a leader in sustainable energy. The focus of energy must move away from traditional sources of energy such as coal and diesel generators towards more renewable and sustainable energy sources so that a modern sustainable energy infrastructure is developed.
Mr Minister one of the views and things that we should be strongly about is an issue that we've been advocating for many years. Policy must be developed to ensure that municipalities have the capacity to generate their own energy using alternative sources of energy. We can even
start with the metros since they have more resources than other smaller municipalities. We must caution however, that it would not be possible for us to do this without addressing the resource constraints that are faced by municipalities due to the current funding model, which gives them only 9,1% of the total revenue. We make this point, Mr Minister and the House because we are of the view that if the energy sources or needs are located in order to ensure the maximum efficiency and success of the project in communities. In other words, certain areas of this country that are deemed to be windy should use wind energy as a source for energy. Those in the abundance of water can use water to generate electricity to overcome some of the energy shortages that we experience in the country.
Ngoko ke, sithi lungisani le nto ngendlela eyiyo. Sisafuna ukuthetha ntonje nasinika imizuzu emithathu kuphela, nathi asinakuyithini loo nto. La masela.
Hon Deputy Speaker, the hon Mnganga mentioned some valid causes of the prices at Eskom, but
the true origin of the crisis is the ANC and the ANC policy. It is the ANC government in all spheres that allowed the debt owed to Eskom to skyrocket whilst for more than 15 years taking a little to no action. It is the ANC government who allowed that in the last decade, there were 12 chief executive officers, CEOs, six chairmen, 60 directors, 30 executives who were paid in the last 10 years a total of R514 million.
The hon Minister of Public Enterprises said in this House last week, that one of the reasons for the crisis is the lack of skills and specially engineers. But whilst we are rendered in darkness, a group of former Eskom engineers are currently building a state of the art power plant in the Philippines. Why are they not assisting us? I will tell you why, hon Deputy Speaker, because they are not welcome at Eskom. Why? It is because of their skin colour and of the ANC's archaic policy of affirmative action. [Interjections.] Because of that archaic racial classification, the poor and the vulnerable in South Africa are suffering the most and our economy is collapsing.
Hon Deputy Speaker, let me also tell the DA that the fact of the matter is that it is not people that are saying that affirmative action causes the problem, that are saying that black people are inferior. It is the policy of the affirmative action that is rendering black people inferior. The policy that you and the ANC are supporting is rendering black people as inferior. [Interjections.] That is the problem, hon Deputy Speaker. We are not appointing the best people for the jobs. We are only interested in redressing rather than restoring the economy, eradicating poverty and creating jobs. On 8 May the voters have the choice, to actually support the party who fights back against this archaic system, against racial classification and against a system that has created the poverty and the economic crisis that we are facing. [Interjections.]
It is time that people take a stance and that we actually want a better future and not a better past. We should appoint the best engineers to actually address the problem. It's a lack of skills that created the problem. It's the ANC that allowed the people to steal the money for salaries to skyrocket and for the debt from
municipalities and public departments to skyrocket. I thank you.
Deputy Speaker, Roger I'll come back to history, but Deputy Speaker, the establishment of Eskom was premised on the need for a reliable and cheap supply of energy. And it was this that resulted in the establishment of Iron and Steel Corporation, Iscor, and other low-cost steel producers, and the expansion of our mining industry amongst other industrial developments.
The ANC cries sabotage, but history will reveal that it was the current governing party that conspired to destroy Eskom on the altar of insatiable greed and corruption, thereby irrevocably sabotaging an economic and developmental prospects. Some of us do speak from history. There is a bitter irony that the illegitimate apartheid regime protected Eskom from sabotage, but what should have been a morally legitimate and trustworthy government in the form of the ANC committed treachery of such treasonous proportions with Eskom.
Today the generation and supply of electricity is neither reliable, nor adequate, nor cheap. It is the governing party that is responsible for our de-industrialisation. Many would say that Eskom represents our single biggest ongoing risk as a nation. However, as the Cope, we say the biggest risk is not Eskom but the current governing party. It is the ANC that conspired and oversaw the defiling and plunder, and the collapse of Eskom. It is the ANC itself that profiteered immorally through chancellor house. And, it is clear that the ANC and its alliance partners are so compromised, factionalised and split - caught in their own web of greed and corrupt interests - that it is paralysed - unable to put together a coherent and viable plan to save Eskom.
Is the hon member ready to take a question?
Are you ready to take a question?
What should we do when you apply to come back to the ANC? [Laughter.]
That is a question that does not need any answer at all. [Laughter.] It is the ANC that betrayed the trust placed in it and broke Eskom, broke our education system, broke our health care system, broke our economy, broke our fiscus, our systems of governance, our cohesion as a nation, our hopes and aspirations and our future.
Hon Madisha, I am afraid to give you the bad news as you see the clock is red. Look at the clock, your time has expired, Sir.
Deputy Speaker, even when there isn't load shedding, many of our citizens face dark, cold nights without hot water or cooked food. It's not because they haven't paid their bills or because there are power outages. It's because their local municipality has racked up debt to Eskom that they are unable to service.
The worst offender is Maluti-a-Phofung Local Municipality, which owes in excess of R2,8 billion to Eskom. The municipality is unlikely to ever be able to settle its bill, as the interest far exceeds the revenue it generates each month. Others, like Emalahleni, Matjhabeng and Thaba Chweu Local Municipalities, are also in dire straits and owe hundreds of millions of rand.
At the end of March 2014, total municipal debt to Eskom was R2,6 billion. By the end of March 2017, it had increased to R13,6 billion, and by September 2018, it had reached a staggering R17 billion. Soweto debt, which is separate from municipal debt, as it is a direct Eskom supply area, also rose to R17 billion during the same period. Combined, this debt is now increasing at a billion rand a month.
This is not something that has crept up on us. The DA has been warning of this financial crisis since 2014. At that time, Minister Gordhan assured us that an interministerial task team would deal with it. This is the same task team that the President and the Finance Minister announced over the past few days, as if it were
something new. Well, here we are, five years later, and the situation is far, far worse. It is now a crisis - and solutions from that interministerial task team seem to be missing in action.
Minister Radebe's announcement at the Africa Energy Indaba that municipalities need to become more self- sufficient with regard to the production of electricity is to be welcomed. In fact, it is a key platform of our Private Member's Bill on cheaper electricity, which the hon Mazzone tabled earlier this year.
The key issue, however, which Minister Radebe has failed to address, is the ability of municipalities to manage this process. Most South African municipalities don't have the capacity to install, maintain and accurately read their customer's electricity meters, let alone ensure the accurate billing of consumption. In our proposals, municipalities must have the financial and technical capacity before they are permitted to generate or manage their own electricity supply.
A huge part of Eskom's troubles arise from the money they are owed. So, how can we fix it? The first thing that needs to happen is that there must be an assessment of which municipalities are in a position to, firstly, pay Eskom what they owe, and secondly, manage, finance, and control their own electricity supply.
Then, we need to clean up municipal financial management and, more specifically, municipal billing. We can do this by deploying the right experts - auditors, accountants, and managers with integrity - to help municipalities get their systems sorted out and get accurate bills sent to customers. We need to ensure that they collect all the revenue that they are entitled to and that their budgets are fully funded and cost-effective.
We need to make sure that they have control of all the electricity supply in the areas of their jurisdiction. So, the City of Johannesburg, for example, would take over areas like Soweto and Sandton, both of which are directly supplied and billed by Eskom. Not only will this give the municipality credit control over those areas, but it will also increase revenue to the municipality -
because municipalities mark up the electricity they purchase.
Lastly, we need to address the cost of electricity. Twenty-five years ago, this country prided itself on having the cheapest electricity in the world. Now, we are pushing to become the most expensive. It is unconscionable that Eskom has increased electricity tariffs by 356% over the past 10 years. It is reprehensible that we pay significantly more for electricity produced by Medupi and Khusile than we would for solar- or wind-generated electricity purchased during the Round 4 independent power producers, IPP, bidding.
By now, it should be obvious: government is failing to provide basic services for its residents. This electricity crisis can be laid firmly at the feet of a corrupt and incompetent ANC. The various Ministers of the Departments of Co-operative Governance and Traditional Affairs and of Public Enterprises, and our President, Cyril Ramaphosa, from the time when he was Deputy President until now, have failed dismally to address the challenges in Eskom and our municipalities.
Where the DA governs, we are miles ahead in providing energy security for our citizens. More than eight out of 10 municipalities in the Western Cape already have laws in place to allow for independent electricity generation, and many of them are ready to sell electricity back to the grid.
Where we govern, we govern better. So, on 8 May, vote to keep the lights on. Take back the power! Vote DA! [Applause.]
Ms D Z Rantho hansard
This caller said that, in times of crisis in state institutions, we must allow those vested with executive authority, the President and the Cabinet, to take tough decisions. As citizens, we can then judge them on the correctness, or otherwise, of their decisions.
Kutsho umntu ongumhlali. Nithini nina malungu ale Ndlu?
He said he was happy that the Minister of Finance, in his augural Budget Speech, took responsibility for setting out policy measures to lead our country out of the difficult economic state of affairs.
Kuyafuneka bantu baseMzantsi Afrika ukuba khe sime okomzuzwana sizikise ukucinga. Kwiinyanga ezintathu ezidlulileyo ndandime kweli qonga...
... to be precise on the 29 November 2018...
... kulo nyaka uphelileyo, ndisenza ingxelo yekomiti yethu yophando kwizinto ezingalunga kwa-Eskom. Sasikunye naba bantu ngethuba sisenza loo ngxelo; sivuma sonke kwaye sithetha ngazwinye, kodwa namhlanje bayasijikela. Ngumthetho wabo ke, bantu baseMzantsi Afrika, kuba balala
bethetha le kuse bethetha leya. Namhlanje bayavumelana nathi kodwa ngomso abasathethi loo nto. Bantu bakuthi, balumkeleni abantu abangaqinisekanga ngezinto abazithethayo. Abaqinisekanga ngale nto bayithethayo kodwa thina siyi-ANC siqinisekile ngento esifuna ukuyenza kwaye siqinisekile ukuba urhwaphilizo lona siza kululwa silusiphule neengcambo zalo apho lukhona. Urhwaphilizo siza kululwa nokuba lwenziwa ngubani na njengokuba sesiqalile. Sesiqalisile ukucoca kwiSebe lezamaShishini kaRhulumente, ngokuba siye ku- Eskom, South African Forestry Company Limited, Safcol nakuDenel. Onke la mashishini aphantsi kweSebe lezamaShishini kaRhulumente sesiqalisile ukuwakhucula, ngoku yintoni kanye kanye eniyifunayo?
Chairperson, on a point of order: Is it parliamentary for the hon member to scream? [Interjections.]
Take your seat, hon member. Proceed, hon Rantho.
In our inquiry report, we urged the shareholder and board of directors to take decisive action to clean up Eskom and improve its financial position. We also named a number of individuals who had been involved in the state capture project and asked the Zondo Commission to investigate further. The Zondo Commission is still in progress and they are still investigating the issues of Eskom.
Andinazi ngenyaniso emsulwa ukuba nifuna ntoni na.
We are grateful to the Commission. It is doing very well.
Let me also remind South Africans that there is a man called Matshela Koko ... [Interjections.] ... a loyal servant, perhaps, of the Guptas. [Interjections.] Let me remind South Africans that Koko was caught lying, twice, on national television. Firstly, he denied that he signed a document authorising the prepayment agreement of almost R600 million to Gupta-owned Tegeta. Secondly, he claimed that he was unaware that his stepdaughter's company had scored a contract worth R1 billion at Eskom.
Today, the same Koko is very outspoken on Twitter, projecting himself as an expert on Eskom matters. Even worse, Koko, who is possibly a criminal, has been given a platform - even by our radio stations - to rubbish the current leadership of Eskom, which is doing so well to clean up the entity. This would be a very good joke, were circumstances not tragic.
Let me emphasise this point: It is the role and duty of the Minister of Public Enterprises, as the shareholder representative, to oversee the boards and management of
state-owned companies, SOCs, in the best interests of our country. If the Minister fails to account frankly and honestly to Parliament about the state of Eskom and its recovery plans, the committee will judge him harshly, as we have done with some of his predecessors.
Our role, as Parliament, is to exercise effective oversight over the executive in terms of our constitutional and democratic mandate. As the President and the Finance Minister have said, there is no doubt that drastic measures need to be taken to set Eskom and other state-owned enterprises, SOEs, on a new and sustainable trajectory.
Siyayazi into esiyenzayo kwaye siqinisekile ngayo.
We therefore call on all our business people, lenders, organised workers, and communities to be part of a constructive, national debate to find lasting solutions to the issue of Eskom. We call on the Minister and government to ensure that our people, particularly the
working class and the poor, will benefit from the reconfiguration of state- owned companies.
Singumbutho weSizwe, sifuna ukukhumbuza uluntu ukuba sithi abantu ababekhokela kuphando lwemiba ka-Eskom kwaye sasisebenzisana noogxa bethu beminye imibutho, siyeke aba basiphikayo namhlanje. Sicela imibutho yabasebenzi isondelele kufutshane kwiNdlu yoWiso-mthetho yeSizwe ukuze sikwazi ukushukuxa le miba idla umzi.
Sicela urhulumente naye asondelele kufutshane kubahlali nabasebenzi ukuze kuboniswane side sifumane isisombululo kule ngxubkaxaka. Ukwenza izigrogriso nokuthukana emoyeni akusayi kusinceda ndawo. Urhulumente wethu uxhasa inkqubo yokuvelisa amandla ombane ngobuchule nobuchwephesha bale mihla. Obu buchule busenza sikwazi ukusindleka uluntu ngeenkonzo zombane ococekileyo. Eli nyathelo lenza ukuba ikamva labantwana bethu liqaqambe kwaye sisatsho nanamhlanje ukuba awukho omnye umbutho omawuvotelwe ngaphandle kwe-ANC. Yi-ANC yodwa ephilayo.
Madam House Chair, this debate should have taken place as early as 2013, when the construction of Medupi and Kusile power stations were virtually cumbersome.
We should have the raised alarm when we were warned by Finance24 that the preferential tariffs for the two BHP Billiton smelters, at Hillside in Richards Bay and Mozal in Maputo, enabled the two lossmaking smelters to be sustained while the rest of the country's consumers, both households and industries paid higher prices as far as electricity is concerned.
The Standing Committee on Public Accounts, Scopa, should have called Mr Ben Ngubane when Eskom was subsidising Optimum Coal at a loss. Mr Zola Tsotsi, former Eskom Chairman should have raised the alarm when politicians were meddling in Eskom's affairs.
House Chair, Eskom's problems are self-inflicted. Our country's growth is depended on the reliable, clean and efficient energy security. Eskom has to be unbundled. It has a huge responsibility that cannot be left to
politicians alone. We need to lower the electricity costs and improve the electricity supply.
This is possibly feasible in an environment where competition in the generation and transmission of electricity is allowed.
House Chair, we are also disenchanted by the attitude of the trade unions in shaping the debate about the unbundling of Eskom. They tend to be oppositionists in this regard. This kneejerk reaction is unscientific, ill- informed and merely pedestrian.
We hope that the current board will scale up the process of maintaining the plants at the power utility including the colliers and power stations. Thank you very much, Madam House Chair.
Hon Chair, hon members, those who believe that the ANC can save Eskom, they suffer from self-hate. Eskom is like a bribery machine run by the ANC deployees. Eskom crisis is an ANC-made disaster. The
morally bankrupt ANC is clueless on how to solve Eskom's crisis.
Hon members, hon Rantho came here and said Matsela Koko is a criminal and that he was working for the Guptas. She forgot to say to the Guptas were also working for Mr President Zuma. [Applause.]
Hon members, the question we need to ask ourselves is: Why Brian Molefe is not in jail? Why Matsela Koko is still a free man? The answer is very simple; these people were stealing money on behalf of some ANC leaders or channelling it to the Guptas. Therefore, bailing out Eskom under these circumstances - under the leadership of the ANC is like rewarding criminals for a job well done.
Hon members, what's happening at Eskom is lack of governance and we must take away Eskom from the hands of the ANC. Failure to do so, load shedding will be the new normal. Therefore I want to say to all South Africans that 8th May is our salvation. We must vote out the ANC. We must defeat the enemy of the poor, which is the ANC.
Hon members, even if you unbundle Eskom, the corrupt ANC will still deploy incapable people, who have no interest of our people at heart.
South Africa is fast becoming a failed state; thank you ANC. Unemployment will continue to rise due to economic stagnation; thank you to ANC. Our young people do not have opportunities; thank you to ANC.
I wish I was able to pray that load shedding can only go to Mr Zuma's house and those people of the ANC, who were part of the looting of Eskom.
Hon members, the ANC is busy writing the obituary of our country. We must stop them before we don't have a country. There is nothing that will get out of the ANC. It is a criminal replacing another. The opposition must prepare to take over after 8th May. [Applause.]
Nkul M S Malatsi hansard
Ndza khensa Mutshamaxitulu.
The ANC likes to boast about it successes, but when it must own its mistakes, it is found wanting. Hon Ranto, everything that is wrong about Eskom is a result of the ANC. Not only did you appoint Matella Gogo, you protected him when wrongdoing was found out. So, you must disown him, even now.
To the gentleman from the Freedom Front Plus, the difference between the DA and the Freedom Front Plus is that we hit first, while you have to scramble over what to fight back with. Even if you were to fight back, what are you going to use? Some "boeremag-like" language to come and divide the country and Peter Marais. [Interjections.] They resuscitate political trash from other organisations as their premier candidates. Move on; the country has moved on. [Applause.]
Once again, this House convenes for an urgent debate on the power-cut crisis that is crippling our country. While we gather here with the knowledge that our work will proceed uninterrupted because Parliament's generators might kick in, many South Africans don't enjoy that privilege. Many industries will be shut down, jobs will
be lost and all of these can be traced back to the people sitting on the right.
While many of the Ministers in this House ignore the true effect of corruption and maladministration that has broken down Eskom, ordinary South Africans feel the pinch every day.
For Sarah Masemola from Winterfield, power cuts are life- threatening and she says: "It is difficult to cope with electricity because I need power to prepare food, because I take diabetes medication. I don't have a paraffin stove to fall back on, like other residents."
A print shop owner in Fordsburg, who can't afford a generator, says: "The power cuts are killing business for my shop. Without power, there are no profits." Even for those who can afford a generator, the impact of the power cuts to their business is still large. Themba Dlamini who owns a butchery in Pietermaritzburg said: "Running a generator during power cuts is expensive and doesn't provide enough energy to keep the lights on, to keep the
fridges on and keep the meat bands saws working optimally."
The impact of power cuts is even felt more in the public health sector. The Helen Joseph Hospital in Gauteng has been one of the hospitals hit the hardest by the recent power cuts. A generator supplying power to the emergency ward recently broke down during a power cut. You can imagine what happens when an emergency ward cannot operate.
While a functional generator or alternative energy sources at hospitals and clinics could be the difference between life and death, the sad reality is that many clinics in poor communities don't even have enough fuel reserves to use generators for long periods. These power cuts by the ANC government are killing our public health system.
One of the most devastating announcements during President Ramaphosa's state of the nation address was the announcement that Deputy President Mabuza, who is forever in absentia, will lead the task team that will deal with
the Eskom crisis. Anyone who has followed the very colourful political career of Deputy President Mabuza knows that he is never one to rely on when you need to fix anything.
The Deputy President has a proven track record in government that shows he is the most incompetent senior public servant in the country.
House Chair, our
Rules say that if you have any matter to raise against a sitting member, you must do so through a substantive motion. Therefore, if this member has a negativity to raise about the Deputy President, he must bring it on, but through a substantive motion, not through all sorts of rubbish. [Interjections.]
Hon Malatsi, as we know, Rule 85(2) says that. Please refrain from that.
House Chairperson, on the same Rule and on the point of consistency, the hon Motsoaledi made allegations against hon Mazonne that she
needs a psychiatrist and that was allowed to get away with. There was no ruling made, no withdrawal ... [Interjections.] Now, the hon member is reflecting on the competence of somebody ...
Hon member, why do you compare that with this one?
Because it is the same.
It is a reflection on a member of the House.
I think the hon Deputy Speaker answered that.
He did not make a ruling and ran away from the House, as the Minister. They run away.
Chair, let us
correct it. The hon Motsoaledi never mentioned a name. He has mentioned a name of the Deputy President D D Mabuza.
House Chairperson, with respect, he said the previous speaker. There is only one previous speaker.
I did not allow you to speak. Can you take your seat and allow hon Malatsi to continue? I have made a ruling on this matter.
The hon Deputy President is no Mr Fix-it. He is the ultimate Mr Destroyer of the public service. We don't trust him; his own colleagues don't trust him. So, he is not the right man to lead us out of the energy crisis.
Hon Malatsi, I am going to check with my advisors of the Table staff because you have been told that you cannot do that without a substantive motion. Continue. [Interjections.]
House Chairperson, on a point of order: There was no point of order taken. With respect, what the hon member is saying is fair political comment. [Interjections.]
I have the discretion to do that.
That is fair political comment.
Hon Steenhuisen, take your seat!
It is unfair to be harassed ... [Interjections.]
Continue, hon Malatsi. I have the right to do that.
House Chairperson, on a point of order: You may not switch off a member's microphone without following the procedure that is set, in terms of the Rule. [Interjections.]
You never got permission in the first place.
House Chairperson, you have a procedure to follow before you turn off microphones in this House.
Hon Steenhuisen, I did not allow you to raise your point.
You cannot expect us to follow the Rules, if you don't follow the Rules yourself.
Hon Steenhuisen, I never gave you permission to speak. So, I am going to disregard everything you are saying. [Interjections.]
House Chairperson, while some parties in this House talk about hypothetical solutions, masquerading as superior logic, we have concrete, workable solutions to ensure Eskom's sustainability. [Interjections.] These include changing Eskom's coal procurement policy immediately to allow Eskom to procure coal from any credible source; introducing independent power producers to reaffirm Eskom's engineering and maintenance employees as an essential service, so that they cannot enter into strike action; introducing a drastic salary restructuring of Eskom's executives; and implore municipalities to embark on a "name and shame" campaign of the main offenders that are not paying their electricity bills.
While talking about this, hon Mnganga-Gcabashe, it is all well and nice to encourage members of the public to pay their electricity bills, but equally, do the same to your ANC colleagues in Midvaal, the City of Cape Town, in the
City of Tshwane who have outstanding municipal bills and are contributing to the municipal debt that goes unpaid. [Applause.]
So, the South Africans watching at home, every power cut you experience is a reminder that the ANC is killing the lights. Therefore, a vote for the ANC is a vote for more power cuts. We are in this crisis because the ANC has allowed Eskom's debt to grow to unaffordable levels. We are in this crisis because of executive instability at Eskom, evident in the appointment six CEOs over a timeframe of 10 years. Hon Ranto, again, it was the ANC that appointed these CEOs, so you must own up to everything that has happened in there. We are in this crisis because the ANC government has failed to complete both Kusile Power Station and Medupi Power Station on time.
So, South Africans, use your vote to cut the ANC's power and vote for a government that has credible solutions to solve the country's power crisis. Hon Jackson Mthembu, that party is the DA! [Applause.]
THE MINISTER OF PUBLIC ENTERPRISES: Hon Chairperson, hon members and members of the public that have interest in this debate. This debate is titled Matters of Public National Importance and I imagines that the speakers from all the political parties are invited in this debate and we thank the DA for taking the initiative in this regard, because at least we can demonstrate what we are doing as country and as a government at this point in time, but what the public expects here, is for speakers from the political parties to offer concrete solutions to what are concrete problems. Instead what we have is either a repetition of what we already said as government in a public domain and that only by the last speaker Mr