Plunged into darkness, SA counts rising cost of wasted Zuma years
This past week has given South Africans a first-hand taste of the damaging effects of the corrupt system of patronage that characterised Jacob Zuma’s tenure as state president. And this is just the beginning. It is a fact that during Zuma’s nine years in office, billions of rands were lost to corruption at all state-owned companies through a sophisticated scheme orchestrated by a network of corrupt politicians and senior public servants. Lucrative state contracts in state-owned companies, national government departments and municipalities were set aside and awarded only to those linked to Zuma. The most infamous of these was by Eskom to a company owned by the Gupta family, Tegeta Exploration Resources, to supply coal. No proper procurement processes were followed. It was this contract and similar ones awarded over the years that were used to siphon billions from the coffers of the power utility — sucking it so dry that it now cannot even afford to offer its employees a salary increase.
Negotiations between Eskom management and labour unions broke down this week when the company insisted on a 0% wage increase. For those who still do not believe that Zuma’s reign was disastrous for this country, they need look no further than this. You cannot not link what is happening at Eskom today to the corruption that has been taking place there over the past few years. It is a classic example of the damage inflicted by Zuma’s disastrous administration. In less than 15 years Eskom has gone from being ranked as one of the leading power utilities in the world to a company that may have to retrench workers to survive.
When parts of the country were plunged into darkness on Thursday evening after Eskom introduced
Stage 1 load-shedding, many started acknowledging the effects of the ruinous Zuma administration. Eskom attributed the power cuts to intimidation and sabotage by its striking workers.
Eskom workers affiliated to two of the biggest trade unions in the country — Numsa and the NUM — rejected the wage offer, maintaining their demand for a 15% increase across the board. They also want a housing allowance increase of R2 000, paid maternity leave for six months and paternity leave for one month. Two other demands are the banning of labour brokers and the insourcing of workers such as cleaners and security guards.
The company is under new management and has a new board after it finally got rid of executives like Matshela Koko, Brian Molefe and Anoj Singh, who stand accused of aiding the looting of Eskom’s coffers by the Gupta family. While this trio and their stooges may be gone, the damage they have caused will be felt for decades.
That is why we welcome the recommendations by Mncedisi Ndlovu & Sedumi Attorneys that criminal charges be brought against Molefe for fraud, corruption and financial misconduct while at the helm of Transnet. The report recommends that Molefe be made to pay back some of the billions of rands that were lost when the budget to purchase new locomotives was increased from R38-billion to R54-billion based on his recommendations. The report was submitted to the new Transnet board on Wednesday. It argues that Molefe, who was CEO of Transnet before joining Eskom, misled the board into approving the costs of the purchase of 1 064 new locomotives.
Not only that, but the law firm also recommends that three more Gupta lieutenants Singh, Salim Essa and Iqbal Sharma, who were also central in misrepresenting to the Transnet board the true reasons for increasing a locomotive deal by almost R16-billion, be brought to book. The board of Transnet will meet this coming week to consider the findings. While many may argue that the recommendations are too harsh, we believe they are fair. Those that help themselves to state coffers must be made to pay back every cent if found guilty. Molefe must be made to pay back the money.
The damage they have caused to the company will be felt for decades