In late June, the coldest part of the Southern Hemisphere winter, the power went out in South Africa. Know more:
In late June, the coldest part of the Southern Hemisphere winter, the power went out in South Africa. For as many as eight hours a day, right into early July, traffic lights went dark, factories and offices shut down, and meals had to be served cold.
Eskom is “a litmus test of the ANC’s ability to deliver basic services,” says Shridaran Pillay, Africa director for Eurasia Group. “You can’t grow an economy without power and without being able to spend on infrastructure.”Founded in 1923, Eskom rapidly built hydro and coal-fired power plants, spurred by the needs of a gold mining industry that was the world’s largest. In the 1970s the company began building a fleet of coal-fired plants that operate to this day.
“When I exited in November 2009, the debt was dramatically less,” remembers Godsell. “For a long time, Eskom bonds had achieved a lower risk [premium] than sovereign bonds.” The projects were mired in allegations of corruption, which in some cases boosted costs. Hitachi Ltd. paid $19 million to settle US Securities and Exchange Commission charges that it made “improper payments” of $6 million to Chancellor House, the investment arm of the ANC, with whom Hitachi had formed a partnership to win contracts to install boilers at the plants. In a separate agreement with South African investigative authorities, ABB Ltd. agreed to return 1.
Local companies “got access, and in the process they were treated differently by Eskom under political pressure,” Mondi says. “You got the beginning of Eskom’s balance sheet being eroded.”In 2015, Eskom and then-Mineral Resources Minister Mosebenzi Zwane allegedly pressured Glencore to sell mines supplying the utility to a company owned by the Gupta family, who were friends with former President Jacob Zuma. Zuma’s son Duduzane had a stake in the company.
ANC Chairman Mantashe, who’s also South Africa’s energy minister, has been particularly critical of the company’s explanations. “Let Eskom blame everybody and anybody,” Mantashe says. “Let them hide behind everybody.” He has suggested starting a second state-owned power company to rival Eskom.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Justin Brownlee thrilled to be on same side of fiercest PBA foes at Gilas Pilipinas'It will be a blessing to be able to suit up and represent the Philippines.” A candidate for naturalization, Justin Brownlee relishes the opportunity to play with the likes of June Mar Fajardo and Chris Newsome as he joins Gilas Pilipinas' training.
Read more »
‘ADB vital PHL partner for green economy’ - BusinessMirrorPRESIDENT Ferdinand “Bongbong” R. Marcos, Jr, said the Asian Development Bank (ADB) will be a crucial partner of the government in developing a “green, sustainable and climate-resilient” economy. Marcos made the remark during the 55th Annual Meeting of the Board of Governors of ADB, which is currently being held in the country until Friday. “I
Read more »
CJ Gesmundo vows to protect judges from threats, harassment - BusinessMirrorChief Justice Alexander Gesmundo has assured judges nationwide that the Supreme Court (SC) would do everything to protect them from threats and harassment. The chief magistrate issued the declaration after the 15-man High Tribunal decided last September 27 to look into possible actions against former National Task Force to End Local Communist Armed Conflict spokesperson Lorraine Badoy
Read more »
DND chief meets with US counterpart on defense, security cooperation - BusinessMirrorDepartment of National Defense (DND) Officer in Charge Jose Faustino Jr. is expected to meet with his counterpart from the United States today (Friday) where discussions on bilateral defense and security cooperation are expected to take center stage. Faustino will meet with US Defense Secretary Lloyd Austin III at the US Pacific Command in Honolulu,
Read more »