President Zuma will On Friday May 6th, be paying a monitoring visit to the two major state owned companies- Eskom and SAA (South African Airways) in order to rectify the challenges faced by the companies in the recent times.
The presidency said this adding that the president’s visit to these two companies (Eskom and SAA) is to keep to his promise of supporting state-owned companies in order to make them more effective as stated on his state of the nation address announcement.
“During the State of the Nation Address‚ President Zuma announced that government will provide support to SOCs while also implementing the reforms that would make them more effective in delivering on their mandates.
“Government fully appreciates the positive role and contribution that State-Owned Companies can and should play in supporting the attainment of the National Development Plan (NDP) objectives‚ especially in the areas of stepping up investment‚ growing the economy‚ expanding the skills base and creating jobs‚” the presidency said in a statement.
Eskom and SAA would be benefiting from the president’s visist as issues causing its delays would be addressed. SAA has been unable to table its financial statements for 2014-15 in Parliament — due by August last year — because of auditors’ concern over its going-concern status while Eskom has for some time now, failed to fulfill its promised of ensuring an uninterrupted power supply due to internal challenges faced by the company.
Report has it that Deputy Finance Minister Mcebisi Jonas told MPs in the National Assembly that when a new board had been appointed and key executive posts — such as CEO and chief financial officer — had been filled in the airline company, the “government will step in to consider possible support that would enable the company to table its annual financial statements for the last two years‚ as a going concern”.
Buzzsouthafrica gathered that delay in appointing a new board is as a result of the stalemate between Mr Zuma‚ who has insisted on retaining is allies namely-SAA chairwoman Dudu Myeni‚ and Finance Minister Pravin Gordhan‚ who has proposed the new board.
Similarly, report has it that the city of Johannesburg has suffered from at least 300 power outages just in one month.
According to TMG Digital which monitored the series of power outages, there had been about 300 reports of outages in 174 neighbourhoods between the month of March and April which when broken down will mean the city suffered an average of nearly 11 outages daily – On multiple days during the period observed‚ more than 20 areas in Johannesburg were affected by power outages.
While some outages lasted only an hour‚ others took over 72 hours to resolve and the City Power said it experienced on average five low voltage (LV) faults a day and two medium voltage (MV) faults a week.
LV faults generally affect only a street or residential complex while MV faults result in an entire suburb going dark.
Speaking on the effect of the high level of outages, energy analyst and EE Publishers managing director Chris Yelland said in addition to causing serious inconvenience and loss for residents‚ the regular outages had a huge effect on the city’s economy.
Businesses have to either come to a standstill during an outage or fork out money for alternative sources of power‚ like generators. Yelland said while electricity may cost a consumer between R1 and R2 per kilowatt-hour‚ the cost of electricity not being delivered was between R75 and R100 per kilowatt-hour.
“The cost of not having electricity for productive purposes when you need it is very much higher than the electricity itself‚” he said.