Eskom’s Troubled Past and the Importance of Transparency

1 min read
Eskom exemption

The current exemption granted by the National Treasury to Eskom, South Africa’s largest electricity supplier, has caused outrage among several South Africans concerned about the lack of transparency and accountability in Eskom’s financial management. This controversy has brought to light Eskom’s troubled past, characterized by corruption, mismanagement, and inefficiencies.

The Rise and Fall of Eskom

Eskom was established in 1923 as the Electricity Supply Commission (ESCOM) and was responsible for generating and distributing electricity to South Africa’s growing economy. Over the years, Eskom became a symbol of the country’s industrial and economic development, as it played a critical role in powering the mining, manufacturing, and agricultural sectors.

However, Eskom’s glory days were short-lived. In the 1980s, Eskom’s expansion plans were curtailed due to budget constraints, and the company began to experience financial difficulties. In the 1990s, Eskom’s financial situation worsened, forcing the company to raise tariffs to cover its operating costs.

Moreover, Eskom’s reputation was tarnished by allegations of corruption, mismanagement, and inefficiencies. In 2008, Eskom was plunged into a crisis when the country experienced a severe electricity shortage, which led to blackouts and forced the company to implement load shedding.

The Importance of Transparency and Accountability

The current exemption granted by the National Treasury allows Eskom to avoid reporting on any irregular and wasteful expenditures for the next three financial years. This decision has raised concerns about transparency and accountability and has been met with opposition from various groups, including the DA and AfriForum.

Transparency and accountability are crucial components of good governance, and they play a vital role in ensuring that public funds are used responsibly and efficiently. Lack of transparency can lead to corruption, severely affecting the economy and the country’s development.

Moving Forward

Eskom’s troubled past and the recent controversy over the exemption granted by the National Treasury underline the importance of transparency and accountability in the public sector. Accordingly, Eskom must take concrete steps to address its past shortcomings and to ensure that it operates in a transparent and accountable manner.

This requires a concerted effort by Eskom’s leadership to implement effective financial management systems, promote good governance, and foster a culture of transparency and accountability. Furthermore, it is crucial that the government provides adequate oversight and ensures that Eskom operates in compliance with applicable legislation.

In conclusion, Eskom’s troubled past and the recent controversy over the exemption granted by the National Treasury serve as a reminder of the importance of transparency and accountability in the public sector. While the challenges facing Eskom are significant, they can be overcome through a concerted effort by all stakeholders to promote good governance and to ensure that public funds are used responsibly and efficiently.

Environmentalist and Outdoor Enthusiast. Amanda is a nature-loving, energetic, and enthusiastic environmentalist who has dedicated her life to exploring and protecting Cape Town's stunning natural landscapes. She is an experienced hiker, wildlife enthusiast, and advocate for sustainable tourism.

Leave a Reply

Your email address will not be published.

Previous Story

Culture Wine Bar: A Sophisticated Hub for Wine Enthusiasts

Next Story

Celebrating Cape Town’s Vibrant Event Scene

Latest from Blog


Dr. Mavuso Msimang, a revered veteran of the ANC, has resigned from the party due to rampant corruption and the party’s plummeting popularity. His departure has sparked reactions and discussions about muchneeded ANC reform. Msimang’s appeal for renewal and introspection within the party comes at a crucial crossroads for South African politics.

Jacaranda FM: An Entertainment Hub and Advocate for Food Safety

Jacaranda FM is a popular radio station in South Africa that offers a mix of English and Afrikaans content. Beyond entertainment, the station is committed to advocating for food safety, upholding regulations, and promoting responsible practices. It engages listeners through social media and online streaming, adapting to the digital age while remaining anchored in the community it serves. As a dynamic media giant, Jacaranda FM continues to evolve and grow, offering a comprehensive approach to addressing the daily complexities of its listeners’ lives.

Dipuo Maloi: More than the Ex of Soccer Celebrities

Dipuo Maloi, known for her past relationships with famous soccer players, is set to redefine her identity in the upcoming reality series Sports Wives. Maloi aims to break the stereotype that her accomplishments are linked to the men she has dated and instead showcase her independence and resilience as an entrepreneur. Her goal is to create a conversation about women’s empowerment and reshape the narrative of women who have been associated with highprofile men.

A Showdown of Resolve and Aspirations: Mamelodi Sundowns versus AmaZulu FC

The upcoming match between Mamelodi Sundowns and AmaZulu FC is a clash of resilience and ambition, showcasing the beauty and passion of football. Despite their recent defeat in the CAF Champions League, Mamelodi Sundowns’ coach, Rhulani Mokwena, remains a pillar of support for his team and has an unshakeable belief in their ability to bounce back. While Mamelodi Sundowns have a dominant track record, AmaZulu FC is equally determined to rise in the rankings and sees the upcoming match as a chance to progress significantly towards securing a place in the top eight.