South African trade union the National Union of Mine workers (NUM) on Tuesday spoke out against the government’s move to sell off 30% of state-run electricity utility Eskom with 10% earmarked for empowerment interests.
Eskom’s latest financial results, the NUM said, proved beyond doubt that public ownership could be both efficient and profitable.
“Government’s announcement of its intended privatisation of electricity generation does not state that the utility’s exceptional performance flies in the face of its held position that public entities are both inefficient and not competitive,” NUM said in a statement.
“Consequently, this further justifies our view that their intention is ideological and not economical. It’s a commitment to liberalise the market and thereby shows the advocates of the free market system that the South African government is serious about such a agenda,” the union added.
For its latest financial year Eskom made profits of R3,7-billion and for four years running has generated the lowest cost electricity in the world. NUM also condemned Eskom’s move to an increase in tariffs by more than inflation thereby placing further strain on poor communities.
“The only logical explanation for these abnormal increases can best be explained as Eskom’s preparation for entry into the free market system. It is time that the Minister of Public Enterprise reconsider his stance and stop evading the union but engage with it,” NUM said. – I-Net Bridge