DISASTER FORETOLD
Gwede Inc: Placing failing Eskom under oversight of failing DMRE is recipe for epic failure
The Department of Mineral Resources and Energy hardly has the capacity to change a light bulb. And yet the ANC thinks that placing Eskom — the failing power utility that threatens to drag the economy down with it — under the department’s oversight is a good idea. This takes ANC ‘policy making’ to new levels of absurdity.
Alarm bells have been ringing about the proposal to bring Eskom under the oversight of the Department of Mineral Resources and Energy (DMRE), and with good reason. Much of the shock stems from Minerals and Energy Minister Gwede Mantashe’s unrepentant pro-coal stance, his touting of procuring unaffordable nuclear power, and his obvious aversion to green energy under the transparent smoke-screens of “base-load” and job preservation.
Then there was the whole Eskom is “agitating to overthrow the state” remark, uttered without any sense of irony or self-awareness by a minister belonging to a party and government overseeing a failing state.
These are legitimate reasons for concern, but perhaps the biggest one is the DMRE’s own slide into dysfunction in recent years, a slide that mirrors Eskom’s. The DMRE has repeatedly shown that it hardly has the capacity to change a light bulb. So how on earth is it going to address the complex challenge of Eskom? The idea that it can is, appropriately, dim, and takes ANC “policy making” to new levels of absurdity.
This correspondent for the past few years has been covering the DMRE’s ongoing train smash. It hardly inspires confidence.
Shambolic
Its shambolic state was thrown into sharp relief in October by a tender it put out for an assessment of its data and phone networks. The document indicated that the department’s systems had become so obsolete that it could no longer source spare parts and that it had not had managed services for almost a decade.
Read more in Business Maverick: “Mineral Resources and Energy data and phone networks assessment tender reveals the lights may be off and nobody home”
The same lack of basic maintenance is one of the key factors behind Eskom’s deterioration. If the DMRE cannot maintain basic IT services, is it seriously going to oversee the care and constant repairs of Eskom’s ageing fleet of shoddy power stations?
Imagine if the DMRE was a candidate for the job and needed to submit a CV. One of the requirements would surely be an excellent track record of actually maintaining stuff.
And the list goes on. With the seeming exception of its health and safety arm, the DMRE is a perpetual saga of screw-ups, unable to simply carry out its day-to-day job functions.
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There was the period in 2021 when it was unable to provide monthly production data on a timely basis to Statistics South Africa (Stats SA) — crucial for compiling gross domestic product figures, among other important statistics.
Read more in Business Maverick: “Stats SA unable to publish June mining data due to energy department’s capacity woes”
In March 2022, Auditor-General (AG) Tsakani Maluleke released a damming report which found the DMRE has been mismanaging its responsibilities for the rehabilitation of the derelict and ownerless mines that scar much of South Africa’s landscape, posing grave health and environmental risks to mostly poor communities.
Mantashe has been a periodic no-show at scheduled events with the mining sector — when it was clear he was simply double-booked — highlighting the point that either his staff can’t get little things like his diary right, or he doesn’t give a you-know-what.
Read more in Business Maverick: “Mantashe a no-show at Joburg Mining Indaba, but Anglo’s former CEO Cutifani comes to the rescue”
The DMRE may now provide oversight over an SOE that is one misstep away from plunging South Africa into a weeks-long blackout that will almost certainly trigger a tsunami of lethal social unrest and transform the economy into an investment wasteland.
Mining cadastre
And of course, there is the unfolding disaster around the DMRE’s obvious reluctance to adopt a proper mining cadastre, which is why there is a logjam of applications for mining and related rights, thwarting investment flows into the sector.
This state of affairs also conveniently means the public and investors are in the dark about the real state of play of mining rights, a situation that is made to order for the corruption and incompetence that have been hallmarks of ANC rule.
Read more in Business Maverick: “After the Bell: Botswana transparently displays what SA’s DMRE may reluctantly provide”
Many have come to regard Mantashe as the real power behind President Cyril Ramaphosa’s throne, and the minister’s enthusiasm for all things hydrocarbon is not just a fossilised fragment of recent economic history.
Don’t be fooled by Ramaphoria 2.0, King Gwede rules South Africa
This brings us back to the first concerns laid out above.
It’s clear that huge chunks of the coal value chain have been hijacked by criminal syndicates, and oil and gas have mostly had a corruptly corrosive impact on African economies. A cheerleader for the sector from the ANC who has stymied efforts to shine the light of transparency on it while showing an aversion to green energy is hardly going to bring Eskom up to speed with the emerging global economy.
When you throw in the DMRE’s abject failure to do anything, it seems, beyond making a cup of Ricoffy, you know it’s time to stock up on candles. It will be ironic indeed if the total blackout comes under the DMRE’s watch, which is a plausible — some would say probable — scenario. Who will take the blame then for agitating to overthrow what’s left of the South African state? DM/BM
Placing Eskom under the DMRE would truly be a disaster, as highlighted, and the energy crisis would only worsen further. They refuse to accept any responsibility for the current situation, while the continual dithering on opening up access for independent power producers has significantly worsened the crisis. Unfortunately, it is quite possible that Eskom will be moved under the DMRE, which is frightening to contemplate.
Ha, wishful thinking! But then, the ANC cannot even organise their own elective conference. So no hope to pull thus off.
Dear Daily Maverick, do any of these criminal anc clowns read your articals?
To realise their stupidy?
Just wondered … They are the only ones not to realise we are F_CKD.
They don’t read it. The DM is not their echo chamber.
It’s the most illogical decision that the ANC has ever taken. Mantashe has been given a licence to loot at the expense of the country’s future. The Karpowerships’ contract will be signed shortly and Mantashe’s retirement fund will be considerably enhanced. This is his reward for supporting Ramaphosa.
Surely a ship-based generation system is more expensive to operate than a land-based system placed closer to transmission systems? Doesn’t make any sense to me at all.
The ship based system’s only advantage is that it already exists and is available and portable. The longer IPP supply into the grid is delayed, the more desperate and attractive the prospect becomes.
And there is no doubt the ship-based system will come with massive “commissions” paid into offshore trusts. This will ensure it is installed.
I agree that it is a pathetic and totally illogical decision. But the most illogical? There’s a long list that would vie for that “honour”. Appointing Zuma as president. Keeping Magashule, Mabusa and Sizulu hanging around. Retaining cadre deployment. Favouring links with Russia over links with the USA. And more. I think I would put the appointment of Zuma as the most illogical.
100% correct, Ed! When historians look back on these dark days of South African history, the Zupta mob will get much of the attention, but Gwede Mantashe is front and centre of the ANC’s destruction of South Africa. He is an odious man, a shadowy luddite, seemingly in thrall to coal and those who run it from the dark corners of our land. Is it possible, under our constitution, to sue the president to force him to fire under-performing or corrupt ministers? Probably not, or I think we’d have seen it happen dozens of times over the last decade or so. But how anybody who actually gives a damn about South Africa can possibly think that DMRE control of Eskom is a good idea, especially under a minister who makes Fikile Mbalula look competent and reasoned.
And now what of the massive increases in Eskom tariffs? All it will do is push more and more people who can afford it to go off the grid – and these are largely the consumers who actually pay their bills, be they households or businesses. So all you’ll be left with are those who can’t afford to pay and those who refuse to pay, and those, like in Soweto, who know they don’t have to pay because there’s an election coming up (there always is, in SA) and the ANC will buy their votes with scrapping the debt. Time for the ANC to be booted into touch and then held to account for their grotesque plunder of South Africa.
We need to demand that Ramaphosa explains why the DMRE is best placed to resolve our energy crisis.
Time for a business led national strike or something equally impossible for him and his cronies to ignore?
This is where business must stand up to government. If not now, then stop talking about it.
The DA and other opposition parties have been very quiet on this. They also must speak up.
If the DA HAD spoken up , they would not have been given any publicity- especially by DM.
Is it possible that this is a clever political move by the President, setting Gwede up for failure?
Nah! Squirrel depends upon Mantashe’s support at all costs. The ANC is determined not to fail before the country. And they’ll do anything to hold onto power. Anything! Party first. Country Second.
What a cunning plan: fully and finally destroy Mzansi so Ramaphosa can be rid of Gwede?
Things are going bad anyway. Hopefully when he(Gwede) can no longer justify pulling the strings to keep things going the current way then Ramaphosa will have an easier time implementing the correct solutions.
Must say I hadn’t thought about this – but very plausible!
Simple ANC puts cheif criminal in charge to loot what is left, hence the Karpower dynamics!
Minister Potbelly, the man behind the throne of “king” Ramaphosa. A dangerous combination.
Trust a Commie to stuff up everything
My hope was that a cabinet reshuffle will put a capable leader in charge of DMRE. This is unfortunately only the tiniest flicker of hope because Ramaphosa is so beholden to Mantashe, and secondly, I don’t think there are any capable leaders left in the ANC.
I have a dream!! That Ramaphosa wakes up and appoints Roger Baxter who is retiring from The Minerals Council as the Minister. Imagine if someone with his knowledge and drive was given free rein.
Years ago I saw a comparison of the South Korean cabinet with ours – theirs were largely engineers and academics in relevant fields, whilst ours were largely lawyers (towards the end of Madiba’s term or beginning of Mbeki’s, can’t remember), so I decided to go and have another look. Didn’t have time to do all the Ministers there, but of the 15 that I did look up, every one of them had a degree from a top university in South Korea and most had additional degrees – Masters and Doctorates mainly – from the likes of Harvard, UCLA and other blue chip US universities. Most of them have also worked at the highest global levels in companies, think tanks and institutions, giving them exceptional global exposure and knowledge to be able to shape South Korea’s destiny. Oh, and if you have a look, the bulk are independent, not affiliated to a political party. That would not happen here!
Gwede Mantashe is an incompetent politician never mind a businessman. He couldn’t manage a pavement pie shop let alone Eskom. He does not have the knowledge or acumen for this post. We are now in beeeeeeg faeces!
Final nail in the coffin of logic. Mantashe is the one who could more appropriately be accused of treason. It is hard to believe just how incompetent or deliberately destructive this man is. Surely business has enough clout to call time on this lunacy?
Probably the worst news to kick off a new year with, coming to realise that IT CAN GET WORSE, and probably will – how do business leaders and the public plan to deal with this. Is it not time for the private sector and public to join together to develop a joint strategy to force this Government to do the right things. At some stage sanity needs to prevail, and we are almost out of time. My local pool shop has 8 x services planned for today and can only do two because of loadshedding, this is not sustainable at the lowest levels of the business environment.
Your local pool shop would be well advised to invest in a mobile generator to run a 750w pump.
The ANC has killed the African Renaissance.
There was an African Renaissance?
By ANC logic, the department of defense should run Denel and department of transport should run SAA, Transnet, SANRAL, ACSA, etc…
No incompetence at all. Everything is running smoothly according to plan. Karpowership and Rosatom will replace a failed ESKOM and the ANC will survive until the second coming. But the rest of us might not.
In the movie “Black Panther” the magic energy resource was “Vibranium”. But SA has gone one step further discovering “Nobranium” !
Ed, spelt damning, not damming …………….
Just when you think it cannot get worse, an idea like this? Chaos will ensue. I just hope the right heads get chopped off.
All I can say is ……I have no words anymore.! The entire situation is a nightmare.
Has anyone seen anything to justify this decision, or about what difference is expected from the change?
Do any of our current business/economic leaders have the courage to stand up and challenge the Government when they impose future threatening decisions on the country.? I am concerned all our business “icons” in the private sector are afraid to openly challenge people like Gwede Mantashe because it may affect their personal wealth. If business leaders openly challenged these absurd and unbelievable decisions by government I think you would find a ground swill of action from the general public, especially when it is time to vote a new government in.
Like the politicians, the wealthy protect their wealth. They have the ability and capability of going elsewhere and continuing along their merry way so why worry about the rest of SA? If only ….
NO. NO. NO. NO. Eskom must not be put under Gwede. He can’t even sort out applications for mining! Also, who is going to be head of Eskom? One of his UNQUALIFIED relations?? I can just see Eskom being pushed into the dirt. When it is out, then will someone else take over and go the renewable energy route? African Rainbow is invested in renewable energy. They are also very well connected to our president and other politicians. Imagine what the price of electricity will be then.!!!!!
What amazes me, how can the ANC decide on structuring of state departments? Apart from their total incompetence to govern a modern state, surely such decisions do not belong with a political party.
I am well over 60 and remember Kelvin Power Station being there since I was a kid. I remember being able to see the plumes of steam emanating from the cooling towers. I saw them again this week !! How come this power station generates power without incident? No stories about ” its old technology and old technology and maintenance is a problem”. Kelvin Power Station is proof the powers at the ANC/ES-KOM are clueless. They should contact those who run Kelvin to run before it becomes ES-GONE !!
Kelvin, of course, to those who may not be aware, is privately owned (by Invested) and managed independently. The reason for its continued good performance is regular maintenance by reputable engineers.
And now he claims he can fix the problem he has caused in 6-12 months on News24 – mantashe-claims-eskoms-power-crisis-can-be-fixed-in-6-to-12-months-20230113
Wow
The ANC completely and utterly fail to grasp the nettle: that is very simply because you are made Minister of whatever, you do not instantly become an expert in whatever. By his utterances (notably about sabotage), Gwede shows that he really cannot separate in his mind being politically in charge but not being an “automatic expert” in all things electrical. Such foolishness would be completely laughable if it were not so tragic for our economy.
The same can be said about the various politically appointed idiots put in charge of SAA and instantly believing themselves to be God’s gift to aviation.
Will we perhaps see a new minister in charge of DMRE? I hope so.
It is now obvious that the time for business and the general public to stand up and demand that competent and qualified people are placed in positions of authority instead of incompetent unqualified cadres is now long overdue
Time to stop paying taxes! To pay into an escrow account and hold it until 1) those implicated in corruption in the Zondo report are fired and prosecuted 2) A plan by qualified people to save Eskom ( whatever that means) and our water systems us put in place 3) A lifestyle audit of all government employees ( starting with Eskom) to track corruption and theft – Artificial Intelligence programs can do this. An appeal to all international bodies to with hold funds to the S.A. givernment on the grounds that it will be “misspent”. Sanctions on our oligarchs and tracking of all the stolen money hidden in foreign banks etc. Let’s learn from how the old ANC brought down the NP and do it.
Perhaps we should be asking the President why and how load shedding is good for the ANC?
It’s been with us for 15 years and steadily getting worse, yet the government has taken no real action to resolve the problem.
IPPs could have helped, but not enough capacity has been signed up yet.
Mantashe initiated the Risk Mitigation IPP Programme, assigned the lion’s share to a foreign company which cannot legally operate its generators here – but when that was discovered, the minister made no other announcement or awards to get the promised power for the country.
This man’s arrogance and stubbornness have undermined the party’s National Development Plan and has made the party’s mission to address inequality, unemployment (especially among the youth), and poverty an impossible dream. He should be held accountable – and, like Carl Niehaus – kicked out of the party.
I may have a vivid imagination, but the Trojan horse will not leave my thoughts.
What if Mantashe is actually in Zuma’s camp and is Ramaphosas’ Trojan horse, intent on destroying his Presidency from within?
Mantashe’s suggestion that De Ruyter was the villain, could be his cunning way to create a distraction and focus attention away from his intentions to bring down Ramaphosa.
The intention to move Eskom to the DMRE would have to be approved by Ramaphosa and when Eskom fails, the blame would be on the head of the ANC CEO – the President.
Quod Erat Demonstrandum. The proof of this argument will be complete when Eskom fails.
To make a decision like this, and pretend it’s in the interest of the country is madness. Can we the people sue the ANC for destroying the country? Probably not. There’s really only one option open to us, and that is agitating for the fall of the government. #ancgovernmentmustfall
Agree.
Stoddard writes that Eskom is, ‘one misstep away from plunging South Africa into a weeks-long blackout that will almost certainly trigger a tsunami of lethal social unrest’.
What I would really like DM to do is an evaluation of how likely such a blackout is, what it’s impact will be, what provincial emergency plans exist, and what we as individuals should do to prepare. For example, what communications networks will remain in operation? Will we be able to pump petrol, or draw money, or even buy food?
Once again ANC internal politics is placed above the good of the country!
Heard that he said the power crisis can be solved within 6 months!! Really and he has the gall to say so.
Also his president says they are addressing the energy crisis – how many time has he told the country this? And can we believe him?
It appears that the tender to assess the DMRE’s data and phone networks was actually awarded to a competent company which exposed the extent of the mess there! There was no attempt to cover up the total lack of maintenance. How did that happen?
Well put. Ed nails it again!
Daily Maverick ask the question about the Karpowership deal to anchor in Maputo and feed into our grid. Solves lots of problems for Mantashe and allows for some nice offshore payments!!!
Criminal syndicates actually have no time for anybody else or their concerns. So if, under the tutelage off the ANC, Eskom has fallen into criminal hands the death knell for South Africa is ringing for sure.