Which country owns Eskom?

Eskom Holdings SOC Ltd has the Government of the Republic of South Africa as its sole shareholder, with the shareholder representative being the Minister of Public Enterprises. As a public entity, it is governed by the provisions of the Public Finance Management Act 1 of 1999 (PFMA). The PFMA requires a company to conclude a shareholder compact with the shareholder representative. The shareholder compact has to contain shareholder expectations in the form of predetermined objectives and key performance indicators and ensures alignment between the Board and the shareholder representative. In addition, the PFMA requires that a company submit a strategic corporate plan to the shareholder on an annual basis, setting out its strategic objectives, with plans and targets to achieve those objectives.

The governance framework, which regulates Eskom’s relationship with its Shareholder (the Government of the Republic of South Africa) and guides the way Eskom does business, is set out in the figure below:

Links to relevant legislation and authorities:

  • Handbook for the Appointment of Persons to Boards of State and State Controlled Institutions
  • Eskom Conversion Act, 13 of 2001 (http://www.info.gov.za/gazette/acts/2001/a13-01.pdf)
  • NERSA (National Energy Regulator of South Africa) (http://www.nersa.org.za)
  • NNR (National Nuclear Regulator) (http://www.nnr.co.za )

The Way, the Eskom way

Eskom commits itself to upholding its values and ethical standards and demonstrating this commitment to all its stakeholders. Therefore, Eskom’s directors and employees are required to apply the Code in their day-to-day activities, especially if there are no rules governing the decisions.
The Eskom Code of Ethics; ‘The Way’, reflects the organisation’s commitment to the highest ethical standards and principles in all Eskom business.  It not only describes the acceptable behaviour and attitudes that are essential in living the Eskom values of Zero Harm, Integrity, Innovation, Sinobuntu, Customer Satisfaction and Excellence (ZIISCE), but it also establishes the foundation for the interaction of Eskom’s Board of Directors and employees with colleagues, customers, suppliers, shareholders, the environment, the public and other stakeholders.
Adhering to this Code is not optional; it is The Way we do business at Eskom, the Eskom Way.
Eskom is also committed to the fight against fraud, corruption, and other forms of economic crime, and irregularities and has established the Fraud Prevention and Whistle Blowing Policies. Eskom adopts a zero-tolerance approach to these activities, irrespective of whether they are committed in or outside the organisation.
This commitment promotes a culture that facilitates the disclosure of information relating to criminal and other irregular conduct in the workplace by employees and others in a responsible manner
To this end, Eskom adopts a holistic approach to prevent, detect, investigate, and take any appropriate action internally and prosecuting externally, through the justice system, towards acts of fraud, corruption, and other forms of economic crime or irregularities.
A system to receive information and act on fraudulent, corrupt and irregular activities from anyone has been established and is being maintained. All information received is treated with strict confidence.
For any advice on ethical issues, please contact the Ethics office on 011 800 2725/6324 or ethics@eskom.co.za
To report fraud, corruption and irregularities to Eskom’s confidential, whistle-blowing hotline: dial 0800-11-27-22. The line is managed by an independent service provider.
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