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ActionSA will be writing to the Minister of Electricity and Energy, Kgosientsho Ramokgopa, and Eskom Chairperson, Mteto Nyati, to demand urgent consequence management and accountability at Eskom.

For too long, South Africans have borne the cost of corruption, incompetence, and mismanagement at Eskom. During a recent sitting of Parliament’s Standing Committee on Public Accounts (SCOPA), the Auditor-General (AG) confirmed that Eskom’s primary energy costs could be significantly lower if losses from criminal conduct, irregular expenditure, corruption, and fruitless spending were eliminated.

The cost of electricity in South Africa has skyrocketed while service delivery has deteriorated. Electricity tariffs have surged by 135% over the past eight years—far outpacing inflation at 44%. Meanwhile, the average South African’s income has grown by just 2%. Last month, households and businesses were hit with yet another 12.7% tariff hike, well above the current inflation rate of 3%, as approved by NERSA.

These excessive costs are having devastating real-world consequences for our economy and individual households. One of the key reasons cited by ArcelorMittal South Africa (AMSA) for closing its long steel business—putting 3,500 direct jobs and up to 100,000 indirect jobs at risk—is unsustainable electricity prices.

Meanwhile, Eskom continues to fail on every front, receiving a qualified audit report every year since 2017, while the power utility achieved only 17 out of 40 key performance indicators (KPIs) in 2023/24.

Further underscoring Eskom’s dysfunction, a forensic investigation into its prepaid electricity token system uncovered a "significant number" of illegal prepaid power tokens created in the 2023/24 financial year. This fraud, facilitated by individuals with privileged access within Eskom’s IT ecosystem, cost Eskom billions in lost revenue and illustrates the entrenched corruption and mismanagement that continues to cripple the power provider. The AG’s findings point to a complete breakdown in internal controls, outdated systems vulnerable to exploitation, and collusion between Eskom staff and illicit operators.

It is unacceptable that the people of South Africa must continue to suffer while corrupt officials go unpunished. ActionSA demands that Eskom and the Ministry of Electricity and Energy take immediate steps to root out corruption, remove incompetent executives, and ensure those responsible face legal consequences. The government of Cyril Ramaphosa can no longer turn a blind eye. Those who have looted Eskom must be jailed, and executives who have failed in their duties must be removed immediately.

Issued by ActionSA Member of Parliament Alan Beesley