With R450 billion in debt, South Africa is looking at at least 18 months of load shedding.
Eskom has said that it is keenly aware of how a failure to keep energy flowing may lead to a credit downgrade for the country and announced on Friday that it needed 18 months to overhaul its failing system, which means load shedding will continue.
The new CEO who has been brought in to overhaul the power utility, Andre de Ruyter, speaks to Bruce Whitfield on The Money Show about the plans ahead.
Eskom is in crisis but it can be fixed.— Andre de Ruyter, CEO - Eskom
The challenges at Eskom have been well publicised, he says.
He seems to have hope that the current Eskom staff may deliver.
I must say the people I have met at Eskom are incredibly proud and work very hard...with skill and commitment.— Andre de Ruyter, CEO - Eskom
But he says there will be some changes.
We will be restructuring the top team and bring in additional talent.— Andre de Ruyter, CEO - Eskom
He says he will not tolerate any interference in how contracts are assessed or awarded.
There are two types of political interference. One is from a concerned shareholder which is not unusual and a legitimate form of intervention. The other kind is completely unacceptable.— Andre de Ruyter, CEO - Eskom
He gives his assurance that Eskom is scrutinising all contracts to ensure that there is no leakage.
He says he will not tolerate any corruption.
That is a line I will not cross.— Andre de Ruyter, CEO - Eskom
He says they are working closely with the SIU and helping to recover looted money.
We can expect more arrests in the near future.— Andre de Ruyter, CEO - Eskom
Divisionalising the entity will help, he insists.
It will enable me to get my arms around the organisation.— Andre de Ruyter, CEO - Eskom
Can he help rebuild public trust in the power utility?
We are aware that we operate from a huge trust deficit and restoring that trust can only be done by delivery against our target.— Andre de Ruyter, CEO - Eskom
Listen to the interview below: