Managing an organisation that has been hollowed out by capture and corruption, with a high cost base and numerous operational inefficiencies, was always going to be a tough challenge. This challenge has been made even more daunting [because of] the fact that Eskom, as a state-owned enterprise, operates in an ecosystem where many of the levers normally open to private sector companies simply are not available.
We have also been unable to find a solution to ballooning municipal debt, in spite of efforts made by the Political Task Team led by the Deputy President. The culture of nonpayment has resulted in municipal debt now amounting to R42.5-billion, equal to 10% of our total debt. This is an unsustainable situation that needs to be resolved urgently, as Eskom cannot continue to fund delinquent municipalities.