Mining Mirror May 2019 | Page 3

Comment Eskom’s rot runs deep Get in touch @LeonLouw3 [email protected] www.miningmirror.co.za A s we all know, the decay at Eskom set in a long time ago, long before the Guptas — with the assistance of their politically connected partners — started thrashing assets in the Witbank coal basin. It began when those responsible for procuring coal at Eskom, and certain coal suppliers, started colluding about prices and how to bypass quality checks. The Guptas obviously perfected the art, but they didn’t invent it. But it is easy to point fingers. We now have the advantage of hindsight — we are sort of connecting the dots. But questions remain. The problem is that everybody who today knows what the cabal was cooking up then, knew it at the time, too. I visited a host of coal mining operations during the height of the Gupta/Zwane reign, and I spoke to many people on the ground. All of them knew, or at least suspected, that systems and processes were bypassed to give preference to politically connected suppliers. The most infamous of these, of course, being Tegeta’s Optimum Mine, where the Guptas, with the assistance of the then minister of mining, Mosebenzi Zwane, rode roughshod over procurement policies and business ethics. During this time, I also visited a few coal testing laboratories. These labs are responsible for testing coal quality and for making sure that the coal supplied to power stations comply with exactly the correct specifications. When boilers at these power stations are fed inferior-quality coal, or rather coal outside of the required specifications, they break (it is of course not that simple, but I don’t want to go into too much technical detail now). This results in downtime, as Eskom experienced recently, and the consequent introduction of load-shedding. Technicians and scientists at the testing labs knew that the coal they were testing were not up to standard. When they refused to sign off these deliveries, they were harassed, threatened, and their houses broken into. Some of them were brave, spoke out, and lost their jobs. Others, under extreme pressure, signed the consignments and, against their will, became part of the rot. To turn Eskom around will require a gargantuan effort, but the secret of getting it right starts at small technical details like these and by bringing back the skills and the knowledge they lost during the days of plunder. The key, though, is to get rid of the corrupt that are still within their ranks. The rot didn’t magically disappear when the Guptas fled. The saddest part of the entire mess is that people who knew what was going on, did not or could not blow the whistle, for various reasons. Some feared for their lives and livelihoods, others did it for political reasons — which brings me to the most nagging question of all: How much does President Cyril Ramaphosa know? He has to know something. After all, Jacob Zuma appointed him, then deputy president, to lead the war room tasked with finding solutions to Eskom’s woes. That was in December 2014. Ramaphosa was asked this question by Pieter Groenewald, parliamentary leader of political party Freedom Front Plus, in the National Assembly recently, to which Ramaphosa replied: “I found that there were too many entry points into Eskom … and that I could not get my arms around Eskom.” Not long after Zuma appointed him, he recommended that it would be better if Zuma appointed a CEO for the company who could be held accountable for its operations. That CEO was Brain Molefe, and we all know what happened to him. I went digging through old press releases during that time, and I came across this one issued by Government in March 2015. My oh my, doesn’t it sound familiar. Here is the full verbatim release, which you can read, weep about, decide how much you knew, and like me, wonder if you should have said something before. “Deputy President Cyril Ramaphosa today, Wednesday 18 March 2015, announced in the National Assembly, the names of the advisory panel he has appointed to advise him on matters regarding the turn-around of Eskom. Members of the Advisory Panel include Professor Anton Eberhard, Ms Dolly Mokgatle, Mr Bobby Godsell, Ms Sy Gourah, Mr Smunda Mokoena and a sixth person with organised labour background will be joining the panel soon. The Advisory Panel has been working with the technical teams working in the government’s War Room. Deputy President Ramaphosa was responding to questions in the National Assembly which focused among others, on steps that government is undertaking to address the electricity challenges facing the country. In this context, Deputy President Ramaphosa informed the National Assembly that various interventions are being implemented to address the electricity supply constraints including the prioritisation of maintenance of all power stations. To assist the Deputy President lead the turn-around process, he has appointed this Advisory Panel to provide an independent view on the effectiveness of the measures proposed to turn around Eskom. The Deputy President believes that there is no short-cut to the challenges facing Eskom, hence the need to develop short, medium and long-term solutions that are independently verifiable by people with expert knowledge of the energy sector. The Advisory panel appointed by the Deputy President on Eskom is different from the Ministerial Council on Energy whose members will be announced soon by the Ministry of Energy.” Leon Editor MAY 2019 MINING MIRROR [1]