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