Eskom: The power giant at the core of S.Africa’s state rot

JOHANNESBURG: The name of Eskom, Africa’s largest electricity company, has become synonymous with the worst corruption scandals in South Africa and the utility could well become the final nail in the political coffin of President Jacob Zuma.

The sacking of yet another of its short-lived CEOs this week and the release of dire financial results confirmed the depth of the crisis plaguing the power utility.

Finance Minister Malusi Gigaba admitted Eskom represents the single worst crisis facing the government.

“Eskom is the biggest risk,” Gigaba said. “There would be no currency, and no economy for the country if Eskom went belly up.”

Parliament in South Africa has for months been probing Eskom over so-called ‘state capture’ – alleged corruption at South African state institutions.

A damning report published a year ago by the then-ombudswoman Thuli Madonsela first laid bare misconduct at Eskom, a state-owned monopoly founded in 1923.

Madonsela detailed how the Gupta business family, who are

Eskom is the biggest risk. There would be no currency, and no economy for the country if Eskom went belly up. Malusi Gigaba, Finance Minister

close friends of Zuma, allegedly arranged the 2015 appointment of Brian Molefe as Eskom chief to line up lucrative contracts to siphon off cash.

Officials and former workers appearing before a parliament hearing in recent weeks have made startling revelations of how Eskom executives helped the Gupta family benefit from favourable deals.

Whistle-blower Mosilo Mothepu, who worked for a company advising on the deals, told the parliamentary committee that Eskom was identified as a ‘cash cow’ by the Guptas.

In one case, Eskom paid more than US$49-million to a Guptaowned mining firm Tegeta to help it buy a coal mine from Glencore. The Guptas would then sell the coal to Eskom. — AFP