Morning Brief – Friday, 21 October 2022

Good morning. Here’s what you need to know today:

• Deputy president David Mabuza says the new Eskom board has the power to fire executives as it sees fit.
• Eskom chairperson Mpho Makwana says the board is in no rush to oust any of the power utility’s management team.
• Offering a solution to Eskom’s massive debt will be top of the finance minister’s medium-term budget policy statement next week.

New Eskom board has power to oust de Ryter, other executives – says Mabuza

It is up to the new Eskom board to decide whether chief executive André de Ruyter and other management personnel are performing adequately, and government must not interfere in the board’s work. That was the sentiment deputy president David Mabuza expressed yesterday while addressing the National Council of Provinces. Mabuza added that the board had the power to hire and fire personnel and had been tasked with finding people who have the necessary skills to fix the power utility. (EWN)

Eskom new chair in no rush to fire execs, but will he hit it off with De Ruyter?

In a separate interview with News24, Eskom chairperson Mpho Makwana says he is in no rush to fire any executives and called such a move “irresponsible.” Makwana says you cannot just walk into a business and fire people but rather time must be taken to evaluate their performance according to the agreements that have been signed. He added that the current executive team still has six months left on their current performance agreement, set by the previous board. (News24, for subscribers)

Eskom debt, social relief grant to top Medium Term Budget Policy Statement next week

Finance minister Enoch Godongwana will have a couple of top priorities when he presents his MTBPS in parliament on Wednesday. Economists expect Godongwana to offer a solution to reduce Eskom’s sprawling debt burden, which sits at around R400 billion. Chief economist at Alexander Forbes, Isaah Mhlanga believes the finance minister will offer R200 billion in debt relief for the power utility. Presenting a pathway forward for the social relief of distress grant, given the high unemployment rate and cost of living crisis will be another top priority for Godongwana.