Eskom's socialist dream turns sour

ONE of the most obvious things about socialist enterprises is that they have their own in-built self-destruct mechanisms. Without the profit motive and the demands of shareholders to goad them into efficiency, the creatures we call parastatals ( like Eskom) over time become self sustaining bureaucracies, dedicated not so much to serving the people as to serving themselves. Take the decision to invite private enterprise into the electricity supply business. Ahem, was that not what Eskom was supposed to do? Never mind. As a result. power-generation firm Ipsa has awarded a US$14-million contract to a subsidiary of global technology giant Siemens to overhaul and upgrade four turbines that it bought earlier this year for its Coega plant, which the London-based firm reiterated would be ready for the 2010 soccer World Cup. (What a relief). Ipsa intends to bring its new capacity on stream as fast as possible to meet the desperate need for power in South Africa,” CEO Peter Earl said. Hum. You would think that Eskom managers would have done all this themselves as part of their brief. That is, planning ahead. Nope. Eskom is in business for itself. A self -perpetuating bureacracy. Private enterprise is welcome but note this: any electricity the private sector supplies has to be sold to Eskom first, before it gets to consumers. If that sounds like a good old fashioned monopoly, so be it. It's is a socialist monopoly, so that's all right then.