‘Notable progress’ on Eskom/SAA and Sapo turnaround - Ramaphosa

“Notable progress” has been made in improving the efficiency of Eskom, South African Airways (SAA) and the South African Post Office (Sapo) since deputy president Cyril Ramaphosa was appointed to oversee their turnaround.

Ramaphosa was responding to questions raised in the National Council of Provinces (NCOP) meeting in Cape Town on Wednesday, which included a query on whether he had put any measures in place to address the challenges associated with the troubled state-owned enterprises.

Commenting that these entities all operated in “challenging and complex industries”, Ramaphosa said that “valuable work had been done to stabilise Eskom and improve its financial position. Governance and leadership challenges are being addressed”.

He added that with the support of the  Eskom 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.

“With regard to our national carrier, 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.

“In short, the 90-day action plan has been successfully implemented. A long-term turnaround strategy has been developed and is being implemented,” said Ramaphosa.

He noted further that a strategic turnaround plan was being considered by Cabinet and said that a “thorough diagnostic review of the challenges at the post office had been undertaken and a business model more suited to the changing postal services environment had been developed. A new Sapo board has also been appointed.