EDITORIAL: A lesson at the coalface on who not do business with

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The government’s cornering of collieries to cut prices casts doubt on SA’s credibility to adhere to the terms of commercial contracts

It is nothing short of outrageous that the government has stepped in to urge coal suppliers to cut their prices to Eskom for the good of the country, when Eskom and the government have done so little to cut costs themselves.

It is the responsibility of Eskom management to investigate contracts it believes were secured through corruption, and cancel them. In the case of the coal contracts, the government is clearly of the view that the private sector is profiteering out of Eskom’s misfortune. While the new Eskom management has been working to replace the short-term contracts with longer-term ones, some of these legacy contracts still remain. It is the responsibility of Eskom management to investigate contracts it believes were secured through corruption, and cancel them. It is also their responsibility to identify the excessively priced contracts and renegotiate them or cancel them.

 

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