THE BMZ ACADEMY
THE BMZ ACADEMY
@0 6 8 0 5 3 8 2 1 3
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Table of Contents
Question 1: Underlying Causes of Eskom’s Failure and Comparison with ZESA (20
Marks) ............................................................................................................................. 3
Question 2: Applying the Three Images of Public Management to Eskom (20 Marks) .... 5
Question 3: Scientific Management versus Political Interference (20 Marks) .................. 7
Question 4: Accountability Mechanisms for Improving Eskom’s Governance (20 Marks)9
Question 5: Eskom’s Unbundling through the Lens of New Public Management (20
Marks) ........................................................................................................................... 11
References .................................................................................................................... 15
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Question 1: Underlying Causes of Eskom’s Failure and Comparison with ZESA (20
Marks)
Eskom’s institutional crisis cannot be attributed to a single cause. Rather, its decline has
resulted from the interaction of weak governance, political interference, corruption,
financial mismanagement, leadership instability, inadequate maintenance and declining
organisational capacity. As a strategically important state-owned enterprise (SOE),
Eskom’s difficulties have consequences far beyond the organisation itself because
electricity is essential to economic activity, public services and household welfare.
Research on South African SOEs identifies governance failures and state capture as
important contributors to Eskom’s inability to fulfil its developmental mandate (Mathebula
& Masiya, 2022).
One of the most important governance problems has been the weakening of institutional
accountability. The Zondo Commission found extensive evidence concerning state
capture and the manipulation of governance and procurement processes within Eskom
and other SOEs. Politically connected individuals and networks were able to influence
appointments, procurement and contracting, creating opportunities for private interests to
benefit from state resources (Zondo Commission, 2022). The problem was therefore not
simply that individual employees acted improperly; rather, governance systems were
weakened in ways that made corruption and maladministration more difficult to prevent
and detect.
Cadre deployment and politically influenced appointments can also contribute to
institutional weakness when political considerations become more important than
competence, experience and organisational requirements. It is important, however, not
to assume that every politically appointed individual is incompetent. The governance
concern arises when appointments are not sufficiently merit-based, transparent or subject
to effective oversight. Pienaar and Bohler (2023) argue that the strategic placement of
politically connected individuals in positions of authority was an important mechanism
through which state capture affected SOEs. Such practices can weaken institutional
BMZ ACADEMY 068 053 8213
THE BMZ ACADEMY
@0 6 8 0 5 3 8 2 1 3
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Table of Contents
Question 1: Underlying Causes of Eskom’s Failure and Comparison with ZESA (20
Marks) ............................................................................................................................. 3
Question 2: Applying the Three Images of Public Management to Eskom (20 Marks) .... 5
Question 3: Scientific Management versus Political Interference (20 Marks) .................. 7
Question 4: Accountability Mechanisms for Improving Eskom’s Governance (20 Marks)9
Question 5: Eskom’s Unbundling through the Lens of New Public Management (20
Marks) ........................................................................................................................... 11
References .................................................................................................................... 15
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Question 1: Underlying Causes of Eskom’s Failure and Comparison with ZESA (20
Marks)
Eskom’s institutional crisis cannot be attributed to a single cause. Rather, its decline has
resulted from the interaction of weak governance, political interference, corruption,
financial mismanagement, leadership instability, inadequate maintenance and declining
organisational capacity. As a strategically important state-owned enterprise (SOE),
Eskom’s difficulties have consequences far beyond the organisation itself because
electricity is essential to economic activity, public services and household welfare.
Research on South African SOEs identifies governance failures and state capture as
important contributors to Eskom’s inability to fulfil its developmental mandate (Mathebula
& Masiya, 2022).
One of the most important governance problems has been the weakening of institutional
accountability. The Zondo Commission found extensive evidence concerning state
capture and the manipulation of governance and procurement processes within Eskom
and other SOEs. Politically connected individuals and networks were able to influence
appointments, procurement and contracting, creating opportunities for private interests to
benefit from state resources (Zondo Commission, 2022). The problem was therefore not
simply that individual employees acted improperly; rather, governance systems were
weakened in ways that made corruption and maladministration more difficult to prevent
and detect.
Cadre deployment and politically influenced appointments can also contribute to
institutional weakness when political considerations become more important than
competence, experience and organisational requirements. It is important, however, not
to assume that every politically appointed individual is incompetent. The governance
concern arises when appointments are not sufficiently merit-based, transparent or subject
to effective oversight. Pienaar and Bohler (2023) argue that the strategic placement of
politically connected individuals in positions of authority was an important mechanism
through which state capture affected SOEs. Such practices can weaken institutional
BMZ ACADEMY 068 053 8213
