Notable progress has been made in implementing the turnaround of Eskom, SAA and the South African Post Office, Deputy President Cyril Ramaphosa said while answering questions in the National Council of Provinces (NCOP) today, Wednesday, 2 September 2015.

With regards to Eskom, the Deputy President said that “valuable work has been done to stabilise Eskom and improve its financial position. Governance and leadership challenges are being addressed”.

 

“With the support of the War Room located in the Presidency, progress has been made in the implementation of government’s five-point plan to address the country’s electricity supply constraints.  An important milestone was the recent opening by President Jacob Zuma of the first unit at the Medupi power station, which adds over 600 megawatts to the national grid”, further said Deputy President Cyril Ramaphosa.

With regards to the South African Airways (SAA), the Deputy President said that “as a result of a focused effort by the board and management and National Treasury as the executive authority, the ‘going concern’ status of SAA has been restored. Operating costs are consistently being reduced and operational efficiency is improving”.

The Deputy President further said that “the 90-day action plan has been successfully implemented.  A long-term turnaround strategy has been developed and is being implemented”.

 

On the South African Post Office the Deputy President said that “a strategic turnaround plan for the South African Post Office is being considered by Cabinet.  A thorough diagnostic review of the challenges at the Post Office was undertaken and a business model more suited to the changing postal services environment has been developed”.

“A new Post Office board has been appointed.  The board is comprised of people with the requisite skills and experience to implement the turnaround strategy”, said Deputy President Cyril Ramaphosa.

The Deputy President also indicated that a broader transformation process of the state-owned enterprise sector is being undertaken while addressing the challenges of the three entities.

“This is being coordinated by an inter-ministerial committee charged with implementation of the recommendations of the Presidential Review Committee on State-Owned Entities. We are certain that if the strategies that have been developed are pursued with focus and determination, they will achieve the desired results”, concluded the Deputy President.

 

Issued by The Presidency