Zuma calls for parastatal review

Johannesburg - President Jacob Zuma this weekend said the way that the country's state-owned enterprises operates need a complete overhaul.

According to state news agency BuaNews on Monday, Zuma said state-owned enterprises like Eskom are so riddled with problems that a serious review of the parastastals is necessary.

The call comes months after the chaos that led to the resignation of both Eskom's former CEO Jacob Maroga and board chairperson Bobby Godsell - as are reports of problems at transport utility Transnet and arms manufacturer Denel.

"Certainly we cannot continue with them like that, it's a problem with the leadership and we are looking at that," said Zuma.

Speaking during an interview with the SABC on Sunday night, Zuma acknowledged that there was a crisis in some of the state-owned companies and said a review was needed to address this.

He referred to power utility Eskom as both a "player and referee", saying it should not be allowed.

"We are creating a situation that in this area of energy which is so important that a player must come in and participate so we don't have Eskom doing everything," Zuma said.

He said if Eskom were allowed to dominate the energy sector, the issue of tariff increases would become a regular feature.

Eskom has come under constant heavy criticism over tariff increases. Last year, it revised its tariff application to the National Energy Regulator of South Africa (NERSA) from an initial 45% to 35% in each of the next three years. Zuma implied that there needed to be vigorous competition in the sector to avoid situations like this, BuaNews reported.

- I-Net Bridge