Tag Archives: The Select Committee on Agriculture

Committee over escalating municipal debt crisis

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Picture: The Eskom

By REGINALD KANYANE

11 April 2025 – The Select Committee on Agriculture, Land Reform and Mineral Resources received briefings yesterday from the South African Nuclear Energy Corporation (NECSA) and Eskom on their audit outcomes and performance in the 2024/25 financial year. The committee commended NECSA for improvement in its audit outcomes from a disclaimed position to clean audits.

The Chairperson of the Committee, Mpho Modise said on operations, the committee told the entity that there should be a dedicated session for that report on the entity’s work and plans, as there was not enough time for that yesterday. Modise said regarding Eskom, the committee acknowledged progress made in stabilising operations and reducing load-shedding.

“However, we expressed concerns over persistent challenges that included the escalating municipal debt crisis, which has crippled the utility’s financial sustainability.

“Other issues raised relating to Eskom included continued problems with fraud, corruption and criminality in spite of efforts to strengthen internal controls and consequence management,” he said.

Modise further said the committee raised questions about delays in the legal separation and unbundling of Eskom’s entities, as well as the utility’s environmental compliance challenges, including with emissions standards. He added that the committee stressed the need for the power utility to be more transparent and provide regular updates on its turnaround efforts.

“The Deputy Minister for the Department of Electricity and Energy, Samantha Jane Graham-Mare, informed the committee that there is a plan to establish a joint task team that will include National Treasury and the Department of Cooperative Governance and Traditional Affairs to develop customized interventions to address the municipal debt crisis.

“The committee told both entities that it will continue to monitor their performance closely and engage with their political principals to ensure accountability,” said Modise.

He said the committee highlighted the need for the department and its entities to improve their responsiveness and transparency and to provide the required information to the committee when that is due.

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Select Committee commends dept for no bailouts to SOEs

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Picture: SOEs in South Africa/Google

By REGINALD KANYANE

27 November 2024 – The Select Committee on Agriculture, Land Reform and Mineral Resources met yesterday with the Minister of Mineral and Petroleum Resources, Gwede Mantashe, the Department of Mineral and Petroleum Resources and the Department of Electricity and Energy.

The meeting provided an in-depth understanding of the mandates, functions and responsibilities of the departments and their respective entities. During the discussions, the committee commended the department for its outstanding efforts in ensuring the financial stability of its State-Owned Enterprises (SEOs) over the past six years, for which no bailouts were required.

The Chairperson of the Committee, Bones Modise said this achievement reflects a strong commitment to fiscal responsibility and effective management, reinforcing the resilience of our SOEs in the face of economic challenges. Modise said a significant concern was the ongoing issue of illegal mining, recognised as a countrywide problem affecting various regions across South Africa.

“Members of the committee highlighted the need for robust regulations to address this pressing issue effectively. Mantashe firmly stated that illegal mining is a criminal activity rather than a mere regulatory violation. He stressed that law enforcement involvement is crucial in tackling this challenge, as it poses serious risks to the economy and community safety.

“The committee also sought clarity on the future of South Africa’s energy supply, particularly regarding the transition from coal to gas and potential partnerships with Mozambique and Russia for gas supply. Additionally, members inquired about the current status of oil and gas exploration along the West Coast, stressing the importance of considering the implications for local communities and environmental sustainability,” he said.

Furthermore, Modise said the discussions highlighted the department’s need to enhance its efforts in addressing historical inequalities within the mining sector. He added that members called for strategies that promote historically disadvantaged groups’ participation and ensure that sector benefits are equitably distributed.

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