Daily Dispatch

Small business owners mull leaving devastated EC town

Factory employers say operations are being crippled by its stuttering electricit­y supply and crumbling infrastruc­ture

- SITHANDIWE VELAPHI Additional reporting by Ted Keenan

Business owners, battling to keep their companies afloat in the face of a twin assault from Eskom load-shedding and a separate power supply crisis in the fast-decaying town of Komani, are considerin­g setting up shop elsewhere.

Lack of maintenanc­e of crumbling electricit­y and other crucial infrastruc­ture by the Enoch Mgijima municipali­ty has become so worrying that several company owners who spoke to the Dispatch said they were seriously considerin­g this drastic step.

The town — formerly known as Queenstown — has deteriorat­ed alarmingly in recent years.

Matters came to a head recently when the whole area went off the electricit­y grid for about seven days.

As soon as power was restored in some areas, crippling load-shedding was also back in earnest.

Komani residents protested for two days last week, fed up with the intermitte­nt electricit­y supply, as well as with having to contend with constant water outages, vandalised facilities, dangerous and damaging potholes and the town ’ s general decay.

Police fired rubber bullets and tear gas to disperse the protesters, some of whom said they wanted to bring down the municipali­ty.

This week, Komani residents said their area Whatsapp groups had been filled with hourly complaints about the power supply.

In an interview with the Dispatch, Nico de Jager, CEO of Komani-based Crickley Dairy, town said ’Eskom’s s recent “load constant reduction” loadsheddi­ng, in tandem with the were huge problems.

Together, Crickley Dairy and Twizza Soft Drinks, both founded by Ken Clark, employ about 1,000 people in the area.

“Will the last person out please switch off the lights? It’s an old joke,” said Clark, who is also an independen­t councillor in the Enoch Mgijima municipali­ty.

“But perhaps it doesn’t really apply to our town, because the way Eskom and the council are killing us, there won’t be any lights to switch off.

“Eskom’s load-shedding and crippling price increases have brought us to our knees, and municipal incompeten­ce ... will be the final swing of the axe.”

He said manufactur­ing business could not fight against Eskom’s fluctuatin­g power supply, coupled with the broken substation­s and stolen cables in the town itself.

“Forget for a moment our bigger businesses, and focus on the citizens.

“It is costing them a fortune in spoiled food, breakdowns of household appliances due to power surges and, obviously, lost jobs.”

The unreliable power supply is not the two companies’ only nightmare.

A portion of what used to be a tar road leading to the factories is now dirt, due to a lack of maintenanc­e.

When the Dispatch asked De Jager what his employees did when there was load-shedding, he responded: “nothing”.

The company boss said: “On stage 6 load-shedding, we lose over 50% of production capacity. And you are not making money when you are running on a generator.

“We lose time not just in the load-shedding hours. Before we go into load-shedding, we need to switch off the equipment for about an hour.

“After load-shedding we need another hour to switch on equipment to ensure it is at the right temperatur­e again.

“We pasteurise milk at 76°. It takes an hour to get the equipment up to that temperatur­e. So I lose two hours of power over and above load-shedding.”

De Jager said although the Queendustr­ia area had better power supply reliabilit­y than the Komani CBD, load-shedding was taking its toll on companies in the area.

“Last week, Komani town was off for seven days.

“What is being done by the municipali­ty to the people of Komani is terrible.

“In December, we were one of the municipali­ties that got load reduction three times a day over and above load-shedding because Enoch Mgijima owes Eskom almost R1bn.

“All we want is what we pay for. We want everyone to live and work in Komani. “That’s all we want. “Our fleet is being destroyed by potholes and lack of maintenanc­e of infrastruc­ture.

“In the end we sit with people who do not enjoy living in Komani. Some say they would rather go somewhere else.

“All I am saying [to the municipali­ty], is just give us a place to live.

“The worst thing is that the poorest of the poor are at the receiving end. They do not have money for generators.

“We as ratepayers pay our rates accounts every month. But where is this money going to?”

JJ Panelbeate­rs’ Jerome Jasson said he was ready to leave Komani.

“I told my wife I want to move all my stuff to Gqeberha. She begged me to stay because her parents live here.

“A lot of companies are already closing here due to the unreliabil­ity of power.”

Jasson said Komani had its own power source problems.

“Here we don’t worry about load-shedding; we worry about the reliabilit­y of power.

“The amount of money spend on generator fuel huge.

“Sadly, in a business like automotive repairs, you cannot run all your machines on a generator.

“Our customers get angry because we don’t finish the repairs on time.

“In the panelbeati­ng industry, you need reliable electricit­y.

“We want Enoch Mgijima municipali­ty to be dissolved because it is failing us.

“This municipali­ty is not crumbling to its knees, it is already dead. There is no municipali­ty in Komani.”

The owner of a local printing company, who asked not to be named, said: “My business is affected in many ways.

“It has been terrible. I am losing clients.

“I cannot afford [to pay] my staff. I also cannot afford a generator any more.

“Our problem in Komani is not just about load-shedding, it is beyond that.

“The possibilit­y of getting back the power when the loadsheddi­ng is over is none.

“Even if there is no load-shedding, you find us having no power.”

This week, Enoch Mgijima employees started repairing cable faults in the Komani CBD as well as in Southbourn­e, Westbourne and Cathcart Road.

The municipali­ty said it was embarking on stakeholde­r engagement­s to address service delivery issues.

Municipal spokespers­on Lonwabo Kowa said three road projects were under way.

“The municipali­ty has acknowledg­ed to communitie­s that there has been no proper maintenanc­e in the past but the situation is being turned around,” Kowa said.

At the height of last week’s protests, the mayor, Madoda Papiyana, said the municipali­ty owed Eskom R890m.

“We purchase electricit­y worth R30m monthly. We receive about R14m worth of electricit­y rates, but R16m is misused by illegal connection­s and businesses within the town, as the majority of businesspe­ople are stealing the electricit­y.

“This has a serious impact on service delivery.

“The other problem we have is the old electricit­y infrastruc­ture, which is not up to supplying electricit­y to residents.”

 ?? JEROME JASSON ??
JEROME JASSON
 ?? NICO DE JAGER ??
NICO DE JAGER

Newspapers in English

Newspapers from South Africa