Eskom insists it will uphold empowerment values despite BEE criticism

Eskom has responded to its board member, Mteto Nyati, saying that empowerment rules are hampering Eskom’s performance and have to go if there’s going to be any chance of ending South Africa’s deepening electricity crisis.

The power-giant, in a statement, said: “As a state-owned entity Eskom would like to reiterate that it embraces the Preferential Procurement Policy Framework Act (PPPFA) and all government policies aimed at transforming the South African economy to deal with the pervasive conditions of inequality and socioeconomic imbalances as espoused in Section 217 of the Constitution and the Public Finance Management Act (PFMA).”

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Eskom plays meaningful role in livelihoods

It said that the Eskom board fully comprehends these imperatives and is totally cognisant of the challenges many South Africans continue to face in terms of livelihoods and playing meaningful roles in the economy.

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“As and when Eskom engages global players and contractors, due cognisance is always taken to facilitate local beneficiation and the empowerment of South Africans, especially black women and the youth, who continue to be the most marginalised members of our society,” the statement reads.

Chairman of the Eskom board, Mpho Makwana, explained that the leadership collective places a high premium on their role as a catalyst for transformation and empowerment.

“Eskom continues to be the largest supporter of black-owned suppliers who are positively contributing value to the production of electricity and we promote black industrialisation as a deliberate approach to supply chain management, localisation and industrialisation in our value chain,” he said.

R134 million procured from B-BBBEE compliant suppliers

In the financial year ended March 2022, Eskom procured more than R134 billion worth of goods and services from B-BBBEE compliant suppliers in South Africa.

This represents approximately 76% of Eskom’s total measured procurement spend on all contracts last year, higher than the 64.5% total measured procurement spent on black-empowered suppliers in 2021.

Procurement spend on black-owned and black youth-owned suppliers rose to 47.1% in 2022, from 34.6% the previous year.