Public Enterprises Minister Pravin Gordhan yesterday unveiled the government’s latest blueprint to kickstart Eskom, which proposes major shifts in the ailing entity’s business model. Politicians, as well as political analysts and financial experts are disappointed in the plan, whose content can be vague and probably poorly implemented, as announced by the minister. Not only did he disappointed South Africa but also the credit rating agencies with his “plan” to save the power supplier from ruin.
Experts point out that the ANC will not privatize Eskom, because it is then out of their hands, and the fear exists that hundreds of ANC members will be fired because it is an overall overpopulated workforce.
Gordhan recommended, among other things, that the various power plants be divided into groups and have to compete with each other over who can generate the cheapest power, but experts say it will bring no harm to the entity’s financial position.
The turnaround plan
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