Outa CEO Blasts Gauteng Premier's Proposal to Erase Eskom Debt as 'Irresponsible'

In a recent and controversial move, Gauteng Premier Panyaza Lesufi has ignited a debate by promising to erase all Eskom debt owed by residents and businesses, particularly in Soweto, where nearly R5 million is due. This statement has been met with vehement opposition from Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), who decried the proposal as irresponsible populist rhetoric during a conversation with Lester Kiewit.

The Addressing of Arrears – A Political Strategy?

Lesufi's remarks come ahead of the 2024 elections, which could be a pivotal moment for South Africa. The announcement, made through a video that went viral, suggests that erasing the debt would create a 'new slate' for citizens and signals to ANC-run municipalities a commitment to securing victory in the election. This political posturing is not novel, as, during election times, conversations about the settlement of outstanding debts surface regularly, but with little progression on resolving the underlying issues.

Eskom - Navigating a Financial Quagmire

Eskom, South Africa's state-owned power utility, is grappling with a dire financial situation. The company is saddled with a staggering debt burden, amounting to billions of Rand, which has escalated expenses for maintenance and operations. With the constant threat of load shedding disrupting daily life and the economy, Eskom's requirement for funds is deemed critical to ensuring sustainable electricity supply.

OUTA's Stance – Consequences & Planning

Echoing the sentiment of pragmatism, Duvenage emphasizes the need for a strategic approach rather than resorting to debt forgiveness without consequences. OUTA, known for its activism against tax abuse and corruption, advocates for transparency, and systemic improvement in the management of state-owned enterprises, which includes Eskom.

The Political Landscape and the Upcoming Elections

As 27 million South Africans have officially registered to vote, the political temperature is rising. The ANC recently celebrated a victory in a by-election at the Imbali township in Msunduzi, KwaZulu-Natal, a sign that its influence remains strong in certain regions. Nonetheless, with allegations of corruption circling high-ranking officials, even ANC strongholds like the North West province show signs of waning support due to poor-performing municipalities and a lack of service delivery.

In the face of these challenges, President Cyril Ramaphosa has acknowledged the allegations against ANC officials and voter registration efforts have been intensified ahead of the elections. However, the backdrop of this political theatre includes serious societal issues, such as the 15 million South Africans who lack IDs, impeding their ability to register to vote.

The Lingering Issues – Homophobia and Change in the Electoral System

The announcement of candidacies often brings out the ugliest aspects of politics, as evidenced by the homophobic remarks directed at the premier hopeful by the KwaZulu-Natal ANCYL and a former DA MP. This detracts from the more pressing discussions on electoral reforms and combating youth voter apathy, as noted by various political commentators and former politicians.

OUTA and Other Voices – Calls for Reform and Action

The build-up to the 2024 elections carries with it a diverse array of opinions and suggested reforms. Beyond the populist call for the erasure of Eskom debt, there is a growing call for a major change in the electoral system and addressing the root causes of voter apathy. Entities like OUTA advocate for addressing systemic issues within state enterprises, while politicians and analysts stress the importance of voter engagement and addressing social ills.

The fraught topic of Eskom's financial challenges amid election-focused promises will continue to be a point of contention as South Africa moves towards an important crossroad in its political trajectory.