Madam Deputy Speaker, I would like to thank the House for the opportunity to account to it as a shareholder of Eskom.
Regrettably, the past 14 days have been a turbulent time for Eskom and the economy, due, unfortunately, to a breakdown in the relationship between the board and its former chief executive officer. Unfortunately, this dispute did not remain an internal matter for the company to resolve in terms of its own corporate governance framework, as it should have but, disturbingly, it entered the public domain through groups with their own political and vociferous campaign in support of one party against another. They provided undue pressure through a never-ending stream of public commentary that sometimes had no basis in fact or law, and only served to inflame and exaggerate an already complex and difficult boardroom matter. This is indeed lamentable.
As my colleague, Minister Naledi Pandor, commented yesterday, the boardroom of Eskom was politicised. This has wrongly painted an exaggerated image of a company in crisis. Yes, there was a breakdown in the critical relationship between the board and the chief executive officer and this is indeed a serious matter. But the fact of the matter was that Eskom and its operations continued. Lights went on, mines were mined, factories manufactured, the wheels of commerce and industry continued to turn, our homes were lit and our food was cooked. The timing of this debate was potentially damaging, as it happened at a time when the Minister of Finance was abroad, raising funds from investors in our parastatal. Fortunately, the damage done to Eskom's reputation was minimal, as investors are well-acquainted with Eskom's performance, but those who want to make a political crusade out of boardroom politics need to reflect on the potentially damaging consequences for a company such as Eskom and for the economy of South Africa. As one frustrated board person said to me in this process, "Minister, how can it be that one person can be so important and override completely the interests of this country and its economy?" [Interjections.]
It is very disturbing to note that this matter also became a racial football, targeting certain individuals who I believe have integrity and only the best interests of the country at heart. Such a racial slur, particularly directed at Mr Bobby Godsell, the former chair of the board, goes against what we fought for and codified in Kliptown and is also against the core values of our society and our Constitution, especially the value and importance of nonracialism and building a united, nonracial and nonsexist South Africa. I want to thank Mr Godsell for his exemplary leadership in this moment and for his leadership in the last 15 months.
In the midst of all of this, I am grateful for the sanity and sobriety that prevailed in important sectors of our country. Madam Deputy Speaker, let me say thank you to Cosatu, to the ANC and to the National Union of Mineworkers, NUM, and those people and forces in our country who chose not to enter publicly into this fray, but to maintain their discretion in the interests of Eskom and the country in these trying two weeks. They have served this country well. They have also served this country well in speaking out on principles that we all love and adhere to. I also look forward to further constructive engagement with the trade unions, especially NUM and the National Union of Metal Workers of South Africa, Numsa, and Solidarity on matters relating to Eskom.
Eskom is probably the most important company and parastatal in our country. We do not deny that Eskom has problems, but we cannot allow Eskom to be fundamentally upset by forces trying to push a political agenda that has no relation to the actual issues that Eskom is trying to address. [Applause.]
In this highly charged and volatile environment, I felt it wise to maintain a prudent silence and to refrain from making public commentary, which would only serve to heighten tensions and embroil government itself in that debate. Instead, the Deputy Minister and I, together with the board, busied ourselves, tirelessly trying to reach an amicable settlement. Days of long hours and complex negotiations ensued. Our aim was to try and reach an amicable settlement that would resolve the matter in the best interests of Eskom and the country.
Madam Deputy Speaker, I wish to acknowledge my colleague in the House here, the Deputy Minister, Enoch Godongwana, for his unflagging support, energy and effort in this matter. I also wish to thank the staff at the Department of Public Enterprises and in particular the directors-general for their unstinting and invaluable support.
We tried to pursue options of facilitation, mediation and arbitration, even a negotiated settlement. During this difficult period, a demand arose that the Minister must provide "leadership". As we were to discover, the subtext of this demand was much more sinister. It was in actual fact a demand that I, as Minister, override the board and confirm a person in his position as chief executive officer, against the wishes of that board and against all corporate governance principles. As Minister, I refused to override the principles of corporate governance by using my political authority to impose a person in the position of chief executive officer without the authority of the law. The type of leadership I preferred to exercise was rather to work indefatigably behind the scenes to resolve the matter within the confines of good corporate governance.
At a certain stage, the President's Office offered its assistance to break the deadlock, and the board was approached to delay its processes in a final attempt to resolve the matter. This intervention, I must stress, was not taken lightly and was not done to undermine the board but rather to lend it support to resolve the dispute. Government's overriding concern was the strategic importance of Eskom to the economy and to the country, and addressing the highly charged political environment that was infusing this debate and dispute and that was, indeed, creating the false notion that Eskom's operations were being compromised.
Let me say upfront, that this government is completely committed to abiding by the principles of proper corporate governance in all of our relationships with our state-owned enterprises, SOEs. As a shareholder, the Articles of Association of Eskom allow me to appoint a chief executive officer, after consultation with the board. The chief executive officer then enters into a contract of employment with the board, which is governed by company and labour law. Included in that contract are the terms for termination of that employment relationship. It would have been inappropriate and entirely illegal for a Minister to interfere in that contractual relationship and, might I add, I am not a signatory to that contract. The right of either party to that contract can be asserted in a court of law, a right that this progressive government entrenched.
Madam Deputy Speaker, I am constitutionally obligated to operate within this legal framework, one which has due regard for our country's labour laws and the Companies Act. As a shareholder, I am already attending to ensuring that we align our state-owned enterprises with the King III report and the new Companies Act, which is due to be implemented in mid-2010.
Let me stress that the integrity of a board is paramount. Boards are appointed by government and, by law, are obligated to govern the company with the support of senior management. The shareholder oversees the functioning of the board, to ensure that the board and the company give effect to the strategic intent and objectives of government.
I am now pleased to inform this House that the board has moved decisively in the last few days, and in the interests of the company and the country, to finally resolve this matter in the following manner: A press conference was held earlier this afternoon, in which the board announced the measures that are being taken. The following facts are relevant: Mr Maroga is no longer the chief executive officer of Eskom. The search for a new chief executive officer will now commence. [Applause.]
Mpho Makwana - you know, the very thing that I have been speaking about of people using political agendas to drive comment on the chief executive officers of boards is just unacceptable. [Interjections.] Mr Makwana will act as the executive chair of Eskom until a permanent chief executive officer is appointed, and he will be appointed by two senior managers ...
Hon members, what is the point of order?
I don't understand the point that the hon Minister just made. [Interjections.] All that we were doing was expressing our opinion that corporate governance has been upheld. That is the very point that she made.
I find it difficult, Madam Deputy Speaker, that you didn't applaud when I spoke about commitment to corporate governance. You only applauded when I said that Mr Maroga is no longer the chief executive officer. It is required that a certain amount of dignity be maintained in this House.
Order, hon members! Please allow the Minister to finish.
Furthermore, a search for a new chief executive officer will now commence. Mr Mpho Makwana, a longstanding member of the board and a seasoned and experienced director and manager will act as executive chairperson of Eskom until a permanent chief executive officer is appointed, and he will be supported by two senior managers in the execution of the chief executive officer's functions. He will also act as an interim chair. In addition, the board is attending to the realignment of board committees and their composition, as well as the necessary delegation of executive functions.
I would like to firmly assure this House that we are on track to ensure that Eskom and all state-owned enterprises have the capacity and support to carry out government's strategic intent, and that I, as shareholder, together with the SOE management and boards, will always act within the law and sound corporate governance principles.
Yes, Eskom is on track. The lights are on, and its most urgent priority - the revised multi year price determination application, the electricity tariff application, due to be submitted to the Regulator on 30 November 2009 - has and is feverishly being attended to.
Madam Deputy Speaker, if there are any concerns about governance of parastatals in the country, let me assure everyone in the House that this Ministry and the boards of state-owned enterprises have full authority to govern their companies without unlawful or inappropriate interference and, might I add, without feeling the pressures of people who make political crusades out of board appointments or board matters. We say to the boards of these companies, hell yes, you must govern. So let us get back to the business of building our economy and back to the business of Eskom doing the work that it has to do, providing energy to this country. Thank you very much.
Adjunkspeaker, ek wil graag die Minister bedank en gelukwens dat sy die Eskom-raad ondersteun dat mnr Maroga nie meer die hoof uitvoerende beampte is nie.
Die belangrike rol van Eskom as die suurstof van ekonomiese ontwikkeling is sedert die negentigs oor die hoof gesien. Die ANC-regering het die waarskuwing van die komende krisis van die destydse Departement van Mineraal- en Energiesake reeds in 1998 gegnoreer. Asof dit nie genoeg was nie, het die voormalige Minister, minister Alec Erwin, hierdie Parlement in 2006 die versekering gegee dat daar nie 'n krisis op hande is nie.
Dit is opgevolg met versekerings van mnr Maroga met sy aanstelling in 2007 dat die raad in beheer is, maar hy het vinnig sy mening verander toe Suid- Afrika in 2008 in donkerte verval het, en toe is die skuld gepak op steenkool wat te nat is, te lae elektrisiteitstariewe en dat onafhanklike kragvoorsieners nie na vore tree nie. Die daaropvolgende beurtkrag en energiebesparings in Suid-Afrika het die ekonomiese groeikoers help afdruk na 'n verwagte 1,5% per jaar.
Benewens die agterstand in die onderhoud van kragsentrales en die feit dat die bou van nuwe sentrales agterwe gelaat is, het die steenkoolkrisis met betrekking tot laegehaltesteenkool en die leemte van voortgesette verskaffing daarvan Eskom se steenkoolreserwes afgedwing en ook die energiereserwes tot 'n laagtepunt beperk. Wat kommerwekkend is, is dat mnr Maroga sedert 2007 oor die steenkoolkrisis ingelig was deur die Olson-verslag, maar dat hy dit blykbaar nie met sy raad gedeel het nie. Daarbenewens het mnr Godsell op 23 Oktober vanjaar - 'n paar dae terug - 'n memorandum geskryf aan Eskom se raad oor 41 aangeleenthede soos deur die Mail & Guardian geopenbaar is.
Hier het ek 'n afskrif van mnr Godsell se dokument in my hande; die sogenaamde "41 points of unfinished business" waaraan onvoldoende aandag geskenk is ten opsigte van raadsbesluite die afgelope twee jaar. Dit het 'n vertrouensbreuk gebring tussen die hoof van die bestuur en die raad. Hierdie 41 punte kom basies daarop neer dat daar groot ontevredenheid by Eskom is oor die werksomstandighede van die werkers.
Die hele kwessie van gehaltesteenkool teen haalbare pryse en die voortgesette verskaffing daarvan aan Eskom word ook in die dokument vervat. Ook die herbesinning van langtermynkontrakte met elektrisiteitsverbruikers, die behoorlike bestuur en invordering van agterstallige skuld, die voorsiening van langtermynsteenkoolkontrakte ... (Translation of Afrikaans paragraphs follows.)
[Dr S M VAN DYK: Deputy Speaker, I would like to thank the Minister and congratulate her for supporting the decision by the Eskom board that Mr Maroga would no longer be the chief executive officer. The vital role that Eskom plays as the oxygen of economic development has been overlooked since the nineties. The ANC government ignored the warnings given by the then Department of Minerals and Energy, as far back as 1998 already, of looming crisis. As if this was not sufficient, in 2006 the former minister, Minister Alec Erwin, gave this Parliament the assurance that there was no crisis.
This was followed by assurances from Mr Maroga, on his appointment in 2007, that the board had things under control, but he soon changed his tune when South Africa was plunged into darkness in 2008, and then coal that was too wet, electricity tariffs that were too low and the fact that independent power suppliers were not coming forward were blamed. The subsequent load shedding and energy-saving in South Africa helped to push down the economic growth rate to an expected 1,5% per year.
Apart from the backlog in the maintenance of the power-stations and the fact that the construction of new stations fell by the wayside, the coal crisis, related to low grade coal and lack of continuity in its supply, impacted negatively on Eskom's coal reserves and also brought down the energy reserves to an all time low.
What is a cause for concern is that Mr Maroga had been aware of the coal crisis since 2007 through the Olson report, but that he apparently did not share this information with his board. Besides this, on 23 October this year - a few days ago - Mr Godsell, according to a report in the Mail & Guardian, wrote a memorandum to Eskom's board regarding 41 areas of concern.
Here in my hands I have a copy of Mr Godsell's document; the so-called "41 points of unfinished business" which had been given insufficient attention in decisions by the board in the past two years. This brought about a breach of confidence between the CEO and the board. These 41 points basically amount to the fact that there is general dissatisfaction at Eskom regarding the working conditions of the employees.
The whole matter regarding quality coal at a reasonable price and its continued supply to Eskom is also mentioned in the document, as is the reconsideration of long-term contracts with electricity consumers, the proper management and collection of arrears, the provision of long-term coal supply contracts ...]
NATIONAL PLANNING COMMISSION: Madam Deputy Speaker, on a point of order: The document that the hon Van Dyk has: Is it a public document or is it a document that was stolen from the boardroom of Eskom? That is my question, because if it is, then there is a fundamental breach of confidence that should be dealt with in terms of the Rules of Parliament. Thank you. [Applause.]
Deputy Speaker, I don't know whether he has accused me of being a thief, but I will give you a copy of the document after the meeting, Mr Manuel.
NATIONAL PLANNING COMMISSION: He didn't answer the question.
Hon member, the question is whether it is a public document: Yes or no?
Agb Adjunkspeaker, ek dink nie ek hoef daarop te reageer nie. Ek sit met 'n dokument in my hande. Hoe dit in my hande beland het, dink ek nie is ter sprake vir minister Manuel nie.
Mag ek voortgaan? (Translation of Afrikaans paragraphs follows.)
[Dr S M VAN DYK: Hon Deputy Speaker, I don't think I have to respond to that. I have a document in my possession. I do not think how it came to be in my possession is of any concern to Mr Manuel.
May I continue?]
Continue, hon member.
Dankie, Adjunkspeaker. Verder verwys hierdie dokument ook na 'n langtermynenergie-aanbodprogram wat benodig word en 'n langtermynenergiefinansieringsprogram waaraan die Departement van Finansies in die verlede nie genoeg aandag geskenk het nie, mnr Manuel.
Feit is dat die raad mnr Godsell se benadering om Eskom reg te ruk aanvaar het en mnr Maroga bereid was om te bedank. Die res is geskiedenis, maar ek dink dit dien vermeld te word dat die Swart Bestuursforum se opmerking in die media dat openbare ondernemings 'n slagpale vir swart bestuurders geword het nie waar is nie, en dat die ANC Jeugliga se kommentaar dat mnr Godsell rassistiese motiewe gehad het met mnr Maroga se vertrek ook van alle waarheid ontbloot is.
Dit blyk tog of dit 'n invloed gehad het op die politieke burokrasie van die ANC in Luthuli-huis, wat die aankondiging van mnr Maroga se bedanking vertraag het omdat die regering nie die raad van Eskom se besluit wou aanvaar nie. Die ANC het dus ingemeng sonder 'n mandaat van die staat as aandeelhouer ten spyte daarvan dat dit die raad se verantwoordelikheid is om die bestuur se prestasie te evalueer.
Die aankondiging deur die waarnemende voorsitter van Eskom, mnr Makwana, vandag, dat mnr Maroga se bedanking van 28 Oktober aanvaar is en dat hy nie meer die hoof uitvoerende beampte is nie, word deur die DA verwelkom. Die vertrouensbreuk tussen mnr Maroga en die raad sou Eskom se geloofwaardigheid net verder in gedrang bring en dit moeiliker maak om die R400 miljard te bekom wat nodig is vir uitbreiding.(Translation of Afrikaans paragraphs follows.)
[Dr S M VAN WYK: Thank you, Deputy Speaker. Furthermore, this document refers to a long-term energy supply programme that is required and a long- term energy funding programme to which the Department of Finance did not pay enough attention in the past, Mr Manuel.
The fact is that the board accepted Mr Godsell's approach to straightening out Eskom and that Mr Maroga was willing to resign. The rest is history, but I do think that it should be mentioned that the statement by the Black Management Forum, BMF, in the media that public enterprises have become slaughterhouses for black managers does not hold true, and that the statement by the ANC Youth League, ANCYL, that Mr Godsell was motivated by racism with regard to Mr Maroga's departure is also completely devoid of any truth.
Nevertheless, it appears that this had some influence on the political bureaucracy of the ANC in Luthuli House, who delayed the announcement of Mr Maroga's resignation, because the government did not want to accept the decision by the Eskom board. The ANC, therefore, interfered without a mandate from the state as a shareholder, despite its being the responsibility of the board to assess the performance of the management.
The DA welcomes the announcement today by the acting chairperson of Eskom, Mr Makwana, that Mr Maroga's resignation on 28 October has been accepted and that he is no longer the CEO. The loss of confidence between Mr Maroga and the board would have led to Eskom's credibility being even more in jeopardy and would have made it more difficult to acquire the R400 billion that is needed for expansion.]
Hon member, your time has expired.
You wasted my time, Mr Manuel. [Applause.]
Deputy Speaker, let me say from the onset, from Cope, that we wish the Minister well in a difficult portfolio. However, we agree with the Minister about the statement that has been made in the House that the problem of Eskom cannot only be placed on one individual. What the Minister did not say, however, is that government must take responsibility for the collective failures of Eskom, because government had been warned long ago about it, but did not heed that warning. The Minister was therefore sure to say that, as government, we take a collective responsibility for the failure of Eskom, and that it will not all be placed on an individual only.
Minister, we do agree with you on the issue of corperate governance, but we worry when a corperate governance is taken to the extent that it seems as if the Minister is a lame duck. We are worried about that and we worry when the Minister does not say a word when other Ministers are making policy decisions for that Minister in parastatal management. We worry about where that corperate governance is that you are speaking of.
We wonder whether this is in fact a wake-up call. Regarding the problem we have in parastatal management, including the issue around the call that pressure has been put on you, but we have not seen anything so far. We wonder whether it is going to be only when Malema is speaking about something that the Minister does something else.
I want to say that we must see the independence of the executive in action in order for us to give support in resolving the problems in South Africa. Thank you.
Deputy Speaker, now you see me, now you don't. Is the chief executive officer gone, or is he still around? We don't know, but thank you, hon Minister, for clearing that up.
The dismal state of affairs at Eskom has impacted negatively on the image of our country, while it has deterred international investment in our economy. The latest Eskom crisis proves that Eskom's problems cannot be dealt with by Eskom alone. Eskom's problems have to become the country's problems and all of us who have been forced to pay up to solve them have not had a say in the matter. What we need from government is a clear commitment to turn around Eskom's ongoing management crisis and we rely on you, Minister, with your bold and courageous leadership to see that that happens.
The IFP calls on government to present to this House a detailed Eskom turnaround plan. We also repeat our calls that public hearings must be held in Parliament to receive both public and expert inputs to determine whether there is an alternative way to fund Eskom's huge expansion programme. [Time expired.] I thank you. [Applause.]
Deputy Speaker, hon Minister, the public did not deserve this. Our most important public enterprise has been treated like a children's playground, with each spin of the merry-go-round revealing a different person in charge. We simply cannot afford this kind of power vacuum at Eskom at a time when it is asking the public for exponential tariff increases and the government is having to guarantee loans of up to R300 billion for it.
Government should have come out in support of the board at the very outset of this debacle and not allowed the chief executive officer and organisations like the ANC Youth League to turn this tragedy into a farce. The worst aspect of this though is how the public and indeed Parliament were kept in the dark about these developments with no one in government providing the much-needed political leadership. Whoever ends up running Eskom, it is clear that a major overhaul of the governance of this institution is required if the public is to regain trust in Eskom and its ability to provide energy security for our nation. I thank you.
Adjunkspeaker, ek wil vir die Minister s, u moet nie hier kom staan soos 'n Pontius Pilates en u handjies in onskuld was nie. [Gelag.] U is net so skuldig. U kom vertel vir ons in die opposisie ons moet nie verpolitiseer nie. Wat het u met u eie lid, Julius Malema, gemaak? Het u hom aangespreek? [Applous.] Het u hom weggejaag? Nee, u moet nie vir ons kom preek nie. Ek wil vandag vir u s, u het te lank getalm. Hierdie verleentheid van Eskom is nie net 'n verleentheid vir Eskom en vir die agb Minister nie, dit is 'n verleentheid vir Suid-Afrika en die verbruiker moet opdok daarvoor - dit is total onaanvaarbaar.
Die VF Plus verwelkom die afdanking, of dan die bedanking, van mnr Jacob Maroga en ek wil vir die agb Minister vra om te verseker dat die nuwe hoof uitvoerende beampte 'n bevoegde persoon is wat in belang van Suid-Afrika en die verbruiker sal optree, want Jacob Maroga het bewys dat hy onbevoeg is vir die pos, ongeag politieke inmenging. Ek dank u. [Applous.] (Translation of Afrikaans speech follows.)
[Mr P J GROENEWALD: Deputy Speaker, I want to tell the hon Minister, you should not come and stand here like a Pontius Pilate washing your hands in innocence.[Laughter.] You are just as guilty. You come and tell us in the opposition that we should not politicise issues. What did you do about your own party member, Julius Malema? Did you take him to task? [Applause.] Did you chase him away? No, you should not come and preach to us. I want to tell you today that you waited too long. This embarrassment caused by Eskom is not only an embarrassment to Eskom and the hon Minister, it is an embarrassment to South Africa and the consumer has to foot the bill for this - it is totally unacceptable.
The FF Plus welcomes the dismissal, or rather the resignation, of Mr Jacob Maroga, and I want to ask the hon Minister to ensure that the new chief executive officer is a competent person acting in the interests of South Africa and the consumer, because Jacob Maroga has proved that he is unfit for the post, notwithstanding political intervention. I thank you. [Applause.]]
Deputy Speaker, thank you hon Minister for your frank explanation which has brought clarity around the Eskom saga. This debacle has undermined confidence in South Africa, negatively impacting on South Africans and the world in general.
Minister Hogan, it was our understanding that you had said that government did not see it as their role to interfere and of course the ACDP is encouraged by your explanation and we are relieved that decisions have been taken to put in place leadership that can inspire confidence. We congratulate you on your decisive and rational leadership in this matter, which is critical to the economy of South Africa and our future development. The demand for power is of course rising faster and faster and a capable captain is required at the helm. Thank you. [Applause.]
Deputy Speaker, government's programme is based on infrastructure development and if one of the key institutions, Eskom, doesn't have its house in order, and with all the infighting, it is basically holding the country to ransom. What do you say about our strategy of economic and social development?
It is important that we bear in mind the consequences of this type of conflict in institutions for delivery and for the workers. We don't want this behaviour to spread to other parastatals. South Africa is now getting a dismal record on parastatals. It is very important that our country does not lose outstanding personalities because of race. Furthermore, there should be no political meddling.
Eskom is in a critical period as regards tariff increases and some sound decisions have to be taken. We have demolished power stations and there were bad decisions and government can't keep on bailing out Eskom. The sooner things stabilise, the better it will be for our country. Thank you.
Deputy Speaker, the ANC welcomes the statement by the Minister of Public Enterprises, Ms Barbara Hogan, which finally sets the record straight on Eskom and underlines and explains to the House the managerial and board conflicts that have beleaguered Eskom in the last few weeks.
The Minister has acknowledged that there were problems at Eskom and we hope that they have finally been resolved. Although there were problems at Eskom, as the Minister emphasised, the lights kept on burning, and there were no major shutdowns. We have learnt this afternoon from the Minister that not only are an acting chief executive officer and a chairperson in place but processes are underway to appoint a fulltime chairperson to find a new chief executive officer for Eskom.
There was squabbling in Eskom's board, as is normally the case in a lot of boardrooms, but I think there are also lessons that we need to learn from this squabbling. As the chairperson of the portfolio committee, I submit that one of these lessons would be to tighten oversight mechanisms, because little did we suspect, three weeks ago when Eskom put their annual report before us, that the relational problems between the board and the chief executive officer had deteriorated to that extent. We submit that we will have to improve as Parliament in terms of oversight of state-owned enterprises, SOEs; and we agree with the Minister, in terms of corporate governance issues.
We also remind the House that yesterday the Minister of Finance submitted to this House that he and Minister Barbara Hogan and, I assume, the cluster of Ministers in the economic sector, are reviewing SOEs. When that process of reviewing SOEs is underway, it must be matched in checking whether the oversight of those mechanisms is in place and is able to ensure that boards do what they are supposed to do, management does what it is supposed to do and the Department of Public Enterprises also does what it is supposed to do.
Accusations have been heaped on government by the media that there is political interference of some sort and micromanagement of state-owned enterprises. We submit that these accusations are unfounded. Just this morning, it was announced that government has granted a guarantee for Eskom to borrow an amount of R350 billion from the markets. It would be grossly irresponsible on the part of government, either in the person of the representative member of the shareholder, as Minister of Public Enterprises, or as Cabinet itself, just to give these guarantees for loans or to provide equity injections or to give loans to SOEs, without ensuring that things are being done right in those SOEs. When things go wrong, it is not political meddling when the shareholder gives directions and gets involved; otherwise one will continue to throw money into a bottomless pit, and other SOEs will continue to claim bailouts.
The projects of Eskom are well underway. Cabinet has also expressed concerns about the impact that the 45% tariff increase might have, not only on the poor but on all South Africans, and is looking for ways and means to mitigate the impact of such tariff hikes. We do, however, know that the National Energy Regulator of South Africa, Nersa, has the last word on this.
I submit that transformation cannot be the sole monopoly of Blacks or Africans, for that reason. All South Africans, black and white, should participate in the process of transformation and we cannot, just because of the colour of a person's skin, level accusations of racism. We will continue, as Parliament, to demand transformation across all sectors of South Africa and we will not claim racism only where there are people of a certain race group. In fact, you do find racists and tribalists in all ethnic groups and in all groups. As a result, you cannot just claim racism. [Interjections.]
I also submit that it is not correct that government has not collectively taken the responsibility for failure to heed the call of Eskom over many years to build power stations and to get ready for economic growth. When one administration goes into office, it inherits all the good and bad things and liabilities of the administration before it. [Interjections.] The previous ANC government has collectively apologised to South Africa through former President Thabo Mbeki.
I want to conclude by thanking the Minister for finally clarifying matters for South Africans, as to where we stand in terms of Eskom, and we hope that we have learnt the lesson that we cannot afford to move from one problem to the next in state-owned enterprises, and we think that the review of these SOEs, including parastatals, that lie across all government departments, should be accelerated. I thank you. [Applause.]
Debate concluded.