‘No plans to ditch’ Molefe’s 50% plus ownership policy

NATIONAL Treasury and Eskom spokespeople at the weekend flatly denied there were any moves to change previous Eskom chief executive Brian Molefe’s controversial 50% plus one requirement for suppliers.

This contradicted comments by executives of Exxaro, Eskom’s biggest single coal supplier, at a media briefing after its interim results presentation that Treasury’s intervention was evident since January in giving greater importance to best price in adjudicating contracts instead.

It appears official policy is not being implemented in this case. Eskom’s 50% plus one ownership policy is however not state policy, but Eskom has insisted on it.

Large-scale coal mines, worth billions of rand and often owned by multinational companies, find it impossible to achieve 50% plus one black ownership in the short-term, given uncertainties around investment in South African mines and the environmental lobby’s objections to coal mining, which deter funders.

A National Treasury spokeswoman said there was no discussion between Eskom and Treasury’s chief procurement officer on lifting the 50% plus one obligation on coal suppliers.

Eskom spokesman Khulu Phasiwe said Eskom’s primary energy team confirmed that 50% plus one remained a policy objective.

Exxaro chief executive Mxolisi Mgojo told the media that Treasury’s intervention had “a neutralising effect. There are no special interests at stake”.

Asked for further details of Treasury’s intervention, given its denial, Exxaro declined to add anything further. — BDLive