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NUM Press Statement, 29 January 2018
NUM statement on Eskom's current crisis
The National Union of Mineworkers (NUM) has noted the appointment of the new Eskom board members replacing a dysfunctional board which has led to Moody’s downgrading of the power utility into deep junk status, which makes Eskom’s debt more expensive and tougher to raise funding.
It is this dysfunctional board and its management team that has led to the deterioration of Eskom’s financial and liquidity position, with little or no prospect of equity injection from the government.The new board must restore investor confidence and steer the utility back onto a path of financial stability. Secondly, the new board, which is consists of knowledgeable businessmen and women must also restore much-needed efficiency and cost-cutting measures to prevent the Eskom ship from sinking.
“It is unfortunate that the new board, as it paves its way around financial and liquidity sustainability, has failed to consult the NUM on this critical path towards stability. We totally reject privatization of any struggling enterprises, including Eskom, as envisaged in the NDP disguised as the private-public partnership.
The NUM demand the following:
• Meaningful consultation on the turnaround strategy from the new board, wherein our views will be included in the strategy.• While we support the resignation of some executives and senior managers, the new board must respect labour laws of this country. We demand proper disciplinary hearings, with no prospects of a so-called golden hand-shake. If an individual is found guilty of corruption, prosecution and re-payment of stolen funds should follow.• The urgent priorities of the new board must, amongst others include:• Review of procurement processes• Cancellation of the 40 years cost-plus coal mining contracts• Increase international sales aimed at developing SADC region and Africa as a whole• Upgrade revenue collection strategies at all levels.
For more information, please contact:
Paris Mashego: NUM Energy Sector Coordinator: 079 517 1758Livhuwani Mammburu: NUM National Spokesman: 083 809 3257
The National Union of Mineworkers 7 Rissik Street. Cnr Frederick Johannesburg Tel: 011 377 2111 Cell: 083 809 3257 Web: www.num.org.za<http://www.num.org.za> Twitter: @Num_Media Facebook: https://www.facebook.com/pages/NUM/100860023402167