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business@iafrica.com reader Hanna Kok would like to give Eskom a piece of her mind.
Where in the world is there a country who has normal inflation rate, but has a request from the electricity company to ask for 45 percent price increase for the next three years and already received an increase of 35 percent this year? I have never heard of this!
How is this possible?
This is very possible, because this is sign of utter and utmost mismanagement. I cannot find any other explanation.
What could be the cause of this mismanagement?
Let me bring some things to the forefront that are happening in other semi-governmental companies.
Eskom cannot adapt to rapid changes
In these companies, many extra people are being employed and are paid big salaries, without making more money for the company. In other words more bean counters are employed and not more bean growers. What do the employment figures in the last 10 years look like in Eskom? What does the income/staff expense ratio look like in the last 10 years for Eskom? I would love to see that.
There are so many bean counters needed in these companies because there are so many rules and regulations in place that have to be audited and re-audited, which costs millions of rands and costs way more than the small amounts of money that could be misused without these rules and regulations. Their rules on the other hand stifle people's creativity and the company becomes a very slow lethargic business, which cannot adapt to the rapid changes of today.
Then the next question is the quality of employment. There seems to be a policy in this country that colour comes before competence. How many competent people have left, or were encouraged to leave Eskom and how competent are the people who replaced them? In other words, are we now asked to pay a huge price for the effects of Affirmative Action?
Coal suppliers couldn't deliver
What are the criteria for the performance appraisals of Eskom management? I know of this other semi-government company where only 5-10 percent of the CEO's performance is measured against the profitability of the company and the rest is about how well he adjust to all the politics. Is this is what has happened in Eskom?
Another side effect of the affirmative action is that companies have to buy goods with the correct BEEE (how many E's are there by now?) status? Eskom had problems in the past, because of coal supplies. Not because there was no coal, but because Eskom had to buy from a political correct company, who then couldn't deliver.
So please people it is time that we start realising that things have to change. Let's get things into the open what is really happening in Eskom, so that we can make fundamental changes.
Let's start putting competent people in the right places, no matter what their colour is. Let's start cutting back on unnecessary costs, caused by employing too many high paid people. Let's stop paying too much for supplies, because we need BEEE. Let us be allowed to use reliable suppliers, no matter what their colour is.
Let us rather find other ways to empower people to make money, instead of BEEE. We have been doing it for 15 years. When is enough enough? There are many options available and it is time we make a change, otherwise we are going to pay a lot more for much more things, caused by mismanagement.
I think that we as the public have the right to these answers before we are expected to pay.
Do you agree with Hanna? Write your comments below or mail the business team at business@primediaonline.co.za
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