BROWN CALLS FOR BOARD

Seven boards named as need­ing new mem­bers or pos­si­bly a com­plete change after pub­lic en­ter­prises reviews sta­te­owned com­pa­nies in min­is­ter’s am­bit

CityPress - - Business - ESKOM SA EX­PRESS DENEL

FI­NAN­CIAL SNAP­SHOT: GOV­ERN­MENT GUAR­AN­TEE: R350bn Short­fall in Eskom’s pro­jected costs (based on 16% tar­iff in­crease) vs Nersa al­lowances (8% tar­iff in­crease) be­tween 2016/17 and 2017/18: R129.1bn

TFI­NAN­CIAL SNAP­SHOT: 2012/13 rev­enue: R855.6m Profit: R70m

The Eskom board, chaired by Zola Tsotsi, has 13 mem­bers. Most of them were ap­pointed in June 2011 and they have presided over bal­loon­ing costs. The Na­tional En­ergy Reg­u­la­tor re­fused to grant Eskom the tar­iff in­crease it wanted, and only budged this week, grant­ing a 12.69% one-off tar­iff while stick­ing to its guns on the 8% in­crease for the rest of the pe­riod. The board was also re­spon­si­ble for a cash crunch that put the util­ity’s credit rat­ing at risk, forc­ing an in­ter­min­is­te­rial task team to come up with a res­cue pack­age last month.

SAF­COL

he board of this lit­tle-known tim­ber and log­ging company is chaired by Veronica Mag­wentshu and has five other mem­bers, most ap­pointed in 2010.

In the year to March 2013, the en­tity was slapped with a qual­i­fied au­dit opin­ion, its first in four years. FI­NAN­CIAL SNAP­SHOT: 2012/13 rev­enue: R2.3bn Pre­tax loss: R157.7m GOV­ERN­MENT GUAR­AN­TEE: R539m

TThe re­gional air­line, led by Andile Mabizela, has ten direc­tors. All but two were ap­pointed last year. And all presided over the company’s in­abil­ity to prove it was able to con­tinue as a go­ing con­cern this week – forc­ing Brown to hold back its fi­nan­cial state­ments for the year to March.

“SA Ex­press is cur­rently un­able to demon­strate such abil­ity with­out gov­ern­ment fi­nan­cial support,” Brown said in a note to Par­lia­ment. “The air­line has ap­plied for a go­ing con­cern guar­an­tee and this is be­ing as­sessed by gov­ern­ment.”

TRANSNET

FI­NAN­CIAL SNAP­SHOT: Gear­ing ra­tio: 2010: 39.8% 2014: 45.9% he Transnet board, chaired by Mafika Mk­wanazi, has 12 mem­bers. All ex­cept four were ap­pointed in 2010. They presided over growth in rev­enue from R35.6 bil­lion to R56.6 bil­lion be­tween 2010 and the year to March 2014. How­ever, its ag­gres­sive cap­i­tal in­vest­ment pro­gramme, although mostly funded with cash from op­er­a­tions, has taken a toll on its gear­ing ra­tio, bring­ing it pre­car­i­ously close to its 50% cap. FI­NAN­CIAL SNAP­SHOT: 2013/14 rev­enue: R4.58 bil­lion Ex­ports as % of rev­enue: 50% Profit: R194m GOV­ERN­MENT GUAR­AN­TEE: R1.85bn

TThe de­fence company’s board is chaired by long-serv­ing board mem­ber Zoli Kunene. Eight of its 15 mem­bers were ap­pointed in 2011, five years after the group em­barked on a turn­around strat­egy and asked for a R5.3 bil­lion bailout from gov­ern­ment. Denel only made a profit in the year to March 2012. he state di­a­mond miner has an eight-mem­ber board led by Rafique Ba­gus. Most are new, in­stalled re­cently by for­mer Pub­lic En­ter­prises Min­is­ter Malusi Gi­gaba to fix Alexkor, which has lurched from loss to loss.

PHOTO: MICHAEL HAM­MOND / FOTO24-KAAP

BOL­STER­ING MAN­AGE­MENT Lynne Brown at the of­fi­cial open­ing of the Western Cape provin­cial par­lia­ment

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