Parliament on decisions taken by new board in dealing with governance challenges

The Portfolio Committee on Public Enterprises is encouraged by decisions already taken by the new board and the Acting Group Chief Executive Officer (GCEO) in dealing with governance challenges at the utility company.

The basis of the challenges at the company has been the decline in governance systems and the Acting GCEO and the board has assured the Committee that they are well on track to deal with this challenge. The resignations and suspensions of senior managers that oversaw the decline at the company attest to the urgency that the board and the Acting GCEO have placed in dealing with these challenges.

The Committee remains concerned about the liquidity challenges at the company but is hopeful that potential investors will recognise the work already done by the new board and the new senior management as reassurance for a brighter future for the company.  

The Committee is convinced that the new leadership at the institution is steering the company in the right direction that will ensure the future viability of the company. This is important for the growth and sustainability of South Africa’s economy.

The Committee has for its part assured the board and the Acting GCEO of its support in turning around the institution. This support is based purely on the basis of ensuring the sustainability of the company, which is of strategic importance to the economy.

One of the issues that need urgent attention is about R20bn in arrears owed to Eskom by municipalities. The Committee will engage the Portfolio Committee on Cooperative Governance and Traditional Affairs to find solutions to this challenge.

The engagement with the board and senior management will always be robust to ensure that the company is turned around.           

For media enquiries or interviews with the Chairperson, please contact the Committee’s Media Officer:
Malatswa Molepo
Tel: 021 403 8438
Cell: 081 512 7920
E-mail: mmolepo@parliament.gov.za