ANC fears Eskom solution
Given the outstanding Eskom debt and the impossibility of maintaining a going concern without a government bailout, we need a considered solution.
All industries and all individuals depend on power. Equally undeniable is that the ANC has all but destroyed Eskom’s ability to deliver power efficiently. We are assured that this is being addressed, but given the project nature of their build out and the long-term consequences of their destruction, we are destined to be paying for this for some time to come.
To ensure the future efficient allocation of resources: the decisions and costs of previous corruption and incompetence must be separated from the future.
Efficiencies must be embedded in the power generation and distribution model from here on
Those responsible for the current scenario must be seen to be censured or prosecuted to ensure tax morality is maintained. Once the costs of previous corruption and incompetence are calculated accurately, government must assume this debt and remove it from the Eskom balance sheet. Only once this is done can Eskom be recognised as a going concern and the cost of power properly calculated and charged for. Our mines and industry can then be offered the market price for power that excludes the “ANC corruption haircut” and their decisions will be made as all business decisions should on the price.
There are many reasons the ANC will not like this. These include: The cost of dereliction of duty will be visible and the huge waste and theft of public funds will be highlighted in rand. The public will be baying for blood. Government will carry the debt and ratings agencies will react negatively. The ANC’s ability to continue employing incompetent corrupt cadres will fall drastically.
Their plans for prescribed assets will come under threat when the public are aware that their pension fund investments could follow their taxes down the tubes. Without the ability to hide past and future financial transgressions, the ANC’s gravy train fuel supply will be reduced. So a normative approach is unlikely given the ANC is still driving the gravy train, but it’s nice to dream anyway.
Dermot Quinn Chiselhurston